Landec increases investment in Windset
July 21, 2014 By Landec Corporation
July 21, 2014, Menlo Park, CA — Landec Corporation, a materials science
company that develops and markets innovative and patented products for
healthy living applications in food and biomedical markets, announced
that its subsidiary, Apio, Inc., has increased its equity investment in
Windset Holdings 2010 Ltd.
July 21, 2014, Menlo Park, CA — Landec Corporation, a materials science company that develops and markets innovative and patented products for healthy living applications in food and biomedical markets, announced that its subsidiary, Apio, Inc., has increased its equity investment in Windset Holdings 2010 Ltd.
Landec purchased 15,857 shares of non-voting Junior Preferred Stock, which represents 8.5 per cent of the outstanding Junior Preferred Stock and an additional 68 shares of Common Stock from the Newell Capital Corporation.
“Our strategic partnership with Windset continues to expand,” said Apio CEO Ron Midyett. “We are pleased that Windset is now selling both packaged cucumbers and peppers using our BreatheWay packaging technology with sales of those products rapidly expanding.
“We are working collaboratively on additional opportunities for Windset to leverage Apio’s BreatheWay packaging.”
Gary Steele, Landec’s Chairman and CEO, added, “We are excited about increasing our ownership in Windset. During 2013, Windset doubled its production capacity in Santa Maria, California to 128 acres. Demand for Windset’s products continues to increase and we expect further expansion by Windset over the next few years.
“As weather-related challenges affect produce sourcing, we believe Windset’s hydroponic greenhouse expertise and leadership will continue to attract retailers, club stores and foodservice operators seeking long-term stability in sourcing produce.
"We believe Apio and Windset are well positioned to capitalize on the healthy living trends which are driving increased consumer demand for fresh vegetables and fruit.”
The aggregate purchase price for the Junior Preferred Stock and the additional Common Stock was $11.0 million. With the increase in Apio's Common Stock ownership, beginning in the first quarter of fiscal 2015, Apio will recognize 26.9 per cent of the quarterly change in the fair market value of Windset.
The increased ownership is not expected to have a significant impact on the change in the fair market value recognized by Apio in fiscal 2015 since the purchase of the new 68 shares of Common Stock approximated fair market value at the time of transaction.
Apio's strategic partnership with Windset, a leading grower of high tech greenhouse produce, began in July 2010 when Apio granted an exclusive license to Windset to use Landec's BreatheWay® packaging technology for cucumbers, peppers and tomatoes.
In February 2011, Apio purchased $15 million of non-voting Senior Preferred Stock and 201 shares of Common Stock in Windset which represented a 20.1 per cent equity ownership interest in Windset.
ABOUT WINDSET FARMS
Windset Farms, with greenhouses and contract greenhouse growers in the United States, Canada and Mexico, markets in excess of 750 acres of greenhouse grown produce and is one of the largest growers and marketers of high tech greenhouse produce in North America.
ABOUT LANDEC CORPORATION
Landec Corporation is a materials science company that leverages its proprietary polymer technologies, application development and innovation capabilities to develop and commercialize new products in food and biomaterials markets.
Landec’s subsidiary, Apio, has become the leader in U.S. fresh-cut specialty packaged vegetables sold in North America based on combining Landec’s proprietary food packaging technology and the strength of two major national brands, Eat Smart® and GreenLine®, with the capabilities of large scale processing and national distribution.
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