BASEL, SWITZERLAND - On the heels of its rejection of Monsanto’s $47 billion takeover bid, Syngenta is making moves to appease investors by divesting its vegetable seeds business.
In an announcement made on Thursday morning, the Swiss agricultural giant said that it intends to “return significant levels of capital to shareholders” by implementing a share buyback program that includes the repurchase of more than $2 billion in shares. The initial program is expected to start in the coming weeks, according to a press release.
As of 1:05 PM EDT, Syngenta’s shares rose approximately 2 percent to $69.28.
Syngenta has been under significant pressure from shareholders as of late after the company repeatedly rebuffed offers from rival seed business Monsanto. In a statement, Syngenta said that Monsanto had fundamentally undervalued the company’s prospects and underestimated the significant execution risks. Had the deal gone through, Monsanto said that it would intend to sell Syngenta’s seed business to appease regulators. Monsanto’s latest offer also included a $3 billion break-up fee if the transaction was blocked by regulators or fell apart for various other reasons.
Monsanto finally gave up its pursuit last week, saying that it will instead focus on “growth opportunities built on its existing core business.”
Syngenta CEO Mike Mack said in a press release, “By demonstrating and unlocking the inherent worth of our leading global seeds portfolio we can create significant additional value. I look forward to updating shareholders in the coming months on progress, including providing further visibility on the underlying profitability of our portfolio of assets.”
According to the New York Times, Syngenta’s vegetable seed business topped $663 million in sales in 2014.
Stay tuned to AndNowUKnow as we continue to track this story.
MONTVALE, NJ - A chapter of the A&P bankruptcy story has come to close, as U.S. Bankruptcy Court Judge Robert Drain ruled yesterday that the chain will pay 52 percent severance to employees who are laid off from the 25 stores scheduled to close.
Initially A&P offered a 25 percent immediate severance, then upped it to 50 percent. But the Poughkeepsie Journal reports that Judge Drain still did not view this as a sufficient amount, ruling an additional two percent and stating that, “Bankruptcy as a whole is about broken promises."
As we previously reported, the retailer has been in talks with United Food and Commercial Workers International to try to find a middle ground for workers as far as bumping rights and severance.
Judge Drain also ruled that bumping rights would be allowed so long as senior workers would assume the pay and benefits of the workers bumped, according to Poughkeepsie Journal, giving the unions until tomorrow to outline and submit their plans. If they fail to do so, he determined that A&P would have the ability to suspend those bumping rights.
The necessity of these rulings does allude to coming layoffs, though the company has stated that issuing layoff notices does not mean that those employees will certainly be laid off. While this part of the Chapter 11 bankruptcy has been determined, it is only for those working at the 25 stores the company has planned for closing and not the whole of the workers in its employment.
Keep checking in with AndNowUKnow as we continue to update you on this developing story.
SANTA PAULA, CA - Calavo Growers has released its Q3 2015 financial report, showing record high revenues and announcing two new facilities in Mexico and Florida.
“Calavo posted an excellent operating performance during the third quarter and registered increases in many key metrics,” said Calavo Chairman and Chief Executive Officer Lee E. Cole. “Our business model of having diversified revenue and profit drivers continues to serve Calavo well. Total revenues and gross profit rose to new highs for any single period in company history paced by increases for those metrics in each of Calavo’s three business segments.”
Third quarter revenues grew 6.3 percent in the third quarter, reaching an all-time high of $232.5 million. This increase is up from $218.7 million over the corresponding fiscal 2014 period. Net income also hit record highs this quarter, totaling $8.6 million, or $0.50 per diluted share.
In addition to the all-time high revenues and new incomes, Calavo also used its report to announce an expansion into a second Mexico growing region with its new packinghouse in Guzman, Jalisco. Expected to come online in first quarter of fiscal 2016, Calavo believes this will be a great way to respond to growing demand.
Additionally, Calavo will be opening a new 208,000 square-foot facility in Jacksonville, FL this December. This new facility will be the first fully shared operation between all the major divisions of Calavo—Fresh, Calavo Foods and RFG. Calavo hopes this will provide the company with the base for greater business penetration into Southeastern U.S. markets, according to a press release.
Other highlights from Calavo’s Q3 2015 financial report include:
- Gross margin hit $24.3 million, up 20.3 percent from $20.2 million
- 120 basis point improvement year-over-year
- Fresh avocado unit volume climbs 15 percent
- Forecast for 2016 total consumption of 2.5 billion pounds, up from 2.0 billion pounds in 2015
- Growth of approximately 25 percent
Stay tuned as AndNowUKnow keeps you updated on the latest industry financial news.
YUMA, AZ - JV Farms Organic Grower Israel Morales and his grandson, Christian Morales, Ranch Manager, look to ensure the future in present practices. The multi-generational growers, who joined forces with Vic Smith, CEO of JV Smith Companies, back in 2012, practice sustainability by endeavoring to give more than they take and cultivate what they are given.
According to the company, it plants a cover crop during the winter, even adopting a program, to both add health to the soil by growing organic and “bank” the previous crop’s nitrogen (fertilizer) through the cold months until it’s needed the following Spring.
“Cover cropping is a long term investment in the soil,” Christian Morales states in a press release.
It’s also an investment in the water, keeping the nitrogen in place and reducing the chance of the winter rains washing it into rivers, streams, and groundwater.
At each season’s end, JV Farms Organic’s team plants the cover crop after the previous has been harvested. Afterwards, they monitor the soil at different stages by taking Quick Nitrate Tests to measure the amount of nitrogen, mowing the grass when the plants have completely absorbed the nitrogen from the soil. According to the company, several tests later the remaining cover crop is disked into the soil, along with more compost, forming the beds back up and letting them sit until the next season. Though simple steps, JV Farms Organic says it’s the intuition, genuine concern for the grounds in which they work, and the effort to work with and connect to nature that makes it complex.
Israel and Christian Morales have taken other measures to give back as well, teaming up with Salinas-based Measure to Improve LLC, who seeks to help those in agriculture hone their sustainability efforts.
“Every time we visit the ranch, we are amazed by the commitment JV Farms Organic has to their sustainability program,” Nikki Rodoni, Founding Principal of Measure to Improve, said in the release. “Their forethought, experience, and passion for growing the best crop while not only leaving the smallest footprint, but taking it a step further and actually giving back more to the earth than they take, has just been phenomenal to watch.”
It is a passion traveling from one generation to the next, as Christian expressed both a love of partaking in growing and feeding many, as well as spending time with his grandfather.
“I feel privileged to learn from him and have this opportunity, I definitely don’t take this experience for granted and I am humbled by this wonderful opportunity,” he said. “I know how lucky I am and I know I need to give back by doing a good job--I want my grandfather to be proud of me.”
Growing in a way that gives back to the ground is a responsibility the two take seriously, according to the company, but also a love and passion that they share.
To find out more about the JV Farms Organic’s sustainability measures, go to their website at www.jvfarmsorganic.com.
UNITED KINGDOM - The bid for Tesco’s Korean chain, Homeplus, is heating up.
With investment firm MBK offering nearly $7 billion yesterday, the Financial Times reports it has scored exclusive negotiating rights for the acquisition.
MBK states that it has a key focus on acquisitions in North Asia, including Korea, Japan and Greater China, putting Homeplus' more than 900 stores in its sights. The report also stated that the company’s offer is backed by the Canada Pension Plan and Singapore state investor Temasek.
On its website, Tesco says Homeplus is serviced by Asia’s largest fresh distribution center, Hamahn Fresh Distribution Centre, as well as two others in the region.
According to a Market Watch report, private equity firms are particularly interested in chains and opportunities in South Korea due to both availability of affordable real estate and the size of the deals. MBK Partners, one of the largest independent buyout firms in Northern Asia, manages about $8.2 billion in assets.
As we previously reported, the retail chain that remains one of the Big Four in the UK in early June. The list of potential buyers has included:
- KKR & Co
- Orion Corp.
- Carlyle Group
- CVC Capital Partners
Will this be the final bidder before the chain is sold? Keep checking in with AndNowUKnow as we continue to report on this developing story.
OAK BROOK, IL - The kale revolution at McDonald’s continues—this time with its new Kale Breakfast McWrap.
Hitting Canadian locations later this month, the fast-food chain is reportedly adding two new breakfast versions of its popular McWraps. Its star new item is a kale and feta wrap with tomatoes, but another will include hashbrown, sausage, and cheese, a source from McDonald's Canada told Business Insider.
This announcement comes on the heels of another announcement McDonald's made to drive global sales with breakfast. Starting October 6, the chain’s restaurants will start selling its morning menu all day long. According to Business Insider, the company is consistently rated as having the best and most popular fast food breakfast menu. McDonald's long has dominated the breakfast category, Reuters says, which already accounts for roughly 25 percent of McDonald's sales and about 40 percent of profit in the United States.
While it's unclear if U.S. restaurants will see the arrival of the Kale McWrap, McDonald's has been emulating its Canadian business in other areas. Recently, CEO Steve Easterbrook has been working to offer more local ingredients in its U.S. restaurants, and tailor menus to area preferences, a strategy McDonald's has already adopted in its Canadian locations.
SANTA PAULA, CA - Limoneira is continuing its expansion in California with its latest land-grab.
The company entered into a purchase agreement to acquire 757 acres of citrus orchards in the San Joaquin Valley for about $15.1 million, about $19,947 per acre.
The purchase, valued at approximately five times its latest acquisition in the area, includes lemon, orange, and specialty citrus orchards. The transaction is expected to close on November 30, 2015.
In a press release, Limoneira states that the orchards are being acquired “pursuant to purchase options contained in certain operating leases the Company has had since 2012 for approximately 1,000 acres of lemon, orange, specialty citrus, and other crops,” referred to as the Sheldon Ranch leases.
The lease agreements include base rent of $500 per acre and contingent rent of 50 percent of the operating profit of the leased property as defined in the lease agreements.
Total rent expense for fiscal year 2015 on the acquired property is estimated to be approximately $900,000 as of the expected closing date of the transaction and was approximately $1.6 million for fiscal year.
SACRAMENTO, CA - General Produce is now officially a “Green Plus Certified” business.
Green Plus, a third-party certification company, examines a company’s engagement and affects with people, planet, and profits. The sustainability certification encompasses a review of the social, economic, cultural, and environmental impacts of the total business practices, according to a press release.
Now one of the first businesses in California to achieve Green Plus Certification, Daniel Chan, President of General Produce, said that this accomplishment will allow the company to develop and improve its workplace environment and expand its community involvement.
“Being a ‘Green Plus Certified’ business means that General Produce will continue to incorporate ‘best sustainable practices’ into our strategic and business decisions,” said Chan. “It provides us with some basic standards and guidelines within energy and conservation measures.”
Thanks to its prior focus on sustainability, General Produce was able to achieve certification well ahead of its original year-end goal.
“Green Plus helped us evaluate and identify areas that we could enhance and expand, as well as focus on new opportunities in the sustainability arena,” said Linda Luka, Director of Marketing and Communications. “No one argues that as an industry, there is much work to be done. We are pleased to be at the front of that parade.”
General Produce also remarked in a press release that it is proud to be a PRO*ACT member and supporter of Greener Fields Together, a sustainability program that helps improve environmental impact and ensures the availability and safety of produce for foodservice and retail partners.
PATCHOGUE, NY - Your perfect summer drinking trifecta has arrived, with a blueberry-brewed beer at the center of it.
Blue Point Brewing Company’s Blueberry Ale is a crisp, well-balanced golden ale made with real blueberries and mild hops that, according to the company, unleashes a lively berry aroma that complements any salty flavor. Enter Atlantic Coast oysters. Blue Point believes that pairing the salinity of the oysters and undertones of blueberry will surely get any festive gathering off to a great start.
"The trio of Blue Point Blueberry Ale with Blue Point Oysters and Blueberry Mignonette showcases one of America's favorite ingredients, blueberries, in ways which create a delicious and unexpected pairing with briny, Atlantic oysters," Julie Qiu, Oyster Sommelier and Blue Point partner said in a press release.
Made with 375 pounds of fresh blueberries, Blue Point brews out its traditional 25 barrel brew house in Long Island, NY.
Want to get your hands on your own Blueberry Ale? Blue Point is currently distributed in most of New England, from Maine, New York, and Vermont, all the way down the coast to Georgia, Florida, and beyond.
And thankfully, Blue Point Blueberry Ale, oysters, and blueberries are available year round, bringing the taste of summer to a table near you.
MISSION, TX - Limex Sicar & Ltd Co. is adding two experienced sales veterans to its team.
Dan Edmeier, now Vice President of Sales, will manage Limex’s tomato program and sales operations in Mission, Texas. Eduardo Herbst has been named Key Sales Account Manager and will oversee all of Limex’s categories including tomatoes, pineapples, limes, and avocados.
Combined, Edmeier and Herbst bring more than 40 years of accomplished sales experience to Limex. Both men will be instrumental in furthering the company’s sales initiatives moving forward.
Edmeier in particular brings over 32 years of leadership experience to his new position at Limex. Prior to joining the company, he served in a number of previous strategic sales and marketing roles, according to a press release.
“We are pleased to welcome Dan to the Limex team,” said Luis Gudino, CEO. “His expertise and network will complement our existing group and expand our sales within the U.S. market.”
Herbst brings with him nearly ten years of sales experience within the greenhouse tomato category.
Gudino continued, “For over twelve years, our commitment at Limex Sicar is producing steadfast quality products with dependable year-round volumes that yield and promote economic development and result in a safe and reliable supply chain for our customer base within the U.S. market.”
Both Edmeier and Herbst attended the AMHPAC Conference in Puerto Vallarta, Mexico on August 26 – 28 to network with some of the world’s top growers of protected agriculture, exporters, and packers within the greenhouse industry.