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Inventure Foods, the US food manufacturer, has announced the divestment of its frozen division in its latest bid to reduce its debt burden.
The firm announced it had entered into a definitive asset purchase agreement for the sale of its frozen business including the Rader Farms and Willamette Valley Fruit Company brands, as well as certain assets, rights and properties related to its frozen fruits, vegetable blends, beverages, and frozen desserts business, to Oregon Potato Company for a total cash consideration of $50 million.
“This strategic transaction […] represents an important step in Inventure Foods’ ongoing strategic and financial review process to maximize shareholder value”, the firm said in a statement.
The divestment is Inventure Foods’ second this year, following on from the sale of its Fresh Frozen Foods division to Pictsweet in March.
Commenting on the move, Inventure Foods CEO Terry McDaniel said: “We are pleased to enter into an agreement for the sale of our frozen business. This is a significant second step under our strategic and financial business review. We intend to use the proceeds from the transaction to further reduce our debt and improve our overall financial flexibility in order to allow us to focus on continuing to grow our leading snack business as we finalize our strategic review”.
