Fresh Express Acquires Verdelli Farms
CINCINNATI, Oct. 16 /PRNewswire-FirstCall/ — Fresh Express, a wholly owned subsidiary of Chiquita Brands International, Inc. , announced today that it has acquired privately held Verdelli Farms, one of the premier regional processors of value-added salads, vegetables and fruit snacks on the East Coast of the United States. The company, which markets its products under the Harvest Select and Verdelli Farms brands, operates in 10 states from Massachusetts to Virginia. Verdelli Farms will be integrated into Chiquita’s Fresh Express unit.
“The acquisition of Verdelli Farms, with its focus on meeting the needs of consumers for fresh, healthy and convenient foods, superior food safety and strong customer relationships, is a great fit within our sustainable growth strategy and an excellent complement to our Fresh Express brand,” said Fernando Aguirre, chairman and chief executive officer of Chiquita Brands International. “The acquisition accelerates our expansion into the Northeast, where there is strong demand from the largest U.S. concentration of value- added salads consumers, but where the Fresh Express brand has been under- represented.”
Aguirre continued, “We are also pleased that Dan, Mike and Jen Verdelli, as well as other members of Verdelli Farms’ strong management team, will remain with the company following the acquisition and offer leadership talent that is a good cultural fit with our focus on innovative value-added products, food safety, freshness, customer service and category development.”
Fresh Express is the No. 1 brand of value-added salads, with a total U.S. market share of approximately 47 percent. Through this acquisition of Verdelli Farms’ modern manufacturing capabilities and efficient distribution capacity, Fresh Express will be able to expand its share in the Northeast from approximately 30 percent today and gain an effective platform for growth in this important region. In addition, the acquisition will allow Fresh Express to gain networkwide cost synergies in distribution and logistics costs while achieving up to a two-day improvement in the freshness of salads it delivers to customers and consumers in the Northeast.
Harrisburg, Pa.-based Verdelli Farms is a third-generation, family-owned business founded in 1924. The company employs approximately 400 people and has annual revenues of approximately $80 million. In 2006, the company produced more than 8 million cases of fresh salads, vegetables and fruit snacks for more than 80 customers in 10 states from Massachusetts to Virginia.
Fresh Express, a wholly-owned subsidiary of Chiquita Brands International, Inc., is the world’s largest producer of fresh salads. With a rich history that traces its roots back to 1926 and the beginnings of the fresh produce industry in Salinas, Calif., where the company is headquartered, Fresh Express is recognized as a leader in food safety and as the creator of the ready-to- eat fresh salad category. Fresh Express is responsible for a number of other important “firsts” in the fresh salad category, including the first complete salad kit and the first salad blend with multiple varieties of lettuces and greens.
With annual revenues of approximately $4.5 billion, Cincinnati-based Chiquita Brands International, Inc. is a leading international marketer and distributor of high-quality fresh and value-added food products – from energy- rich bananas and other fruits to nutritious blends of convenient salads and greens. The company’s products and services are designed to win the hearts and smiles of the world’s consumers by helping them enjoy healthy fresh foods. The company markets its products under the Chiquita(R) and Fresh Express(R) premium brands and other related trademarks. Chiquita employs approximately 25,000 people operating in more than 70 countries worldwide. For more information, please visit http://www.chiquita.com/ and http://www.freshexpress.com/.
This press release contains certain statements that are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of Chiquita, including the continuing impact of the 2006 conversion to a tariff-only banana import regime in the European Union; unusual weather conditions; industry and competitive conditions; financing; product recalls and other events affecting the industry and consumer confidence in the company’s products; the customary risks experienced by global food companies, such as the impact of product and commodity prices, food safety, currency exchange rate fluctuations, government regulations, labor relations, taxes, crop risks, political instability and terrorism; and the outcome of pending claims and governmental investigations involving the company.
Any forward-looking statements made in this press release speak as of the date made and are not guarantees of future performance. Actual results or developments may differ materially from the expectations expressed or implied in the forward-looking statements, and the company undertakes no obligation to update any such statements. Additional information on factors that could influence Chiquita’s financial results is included in its SEC filings, including its Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.
Chiquita Brands International, Inc.
CONTACT: Michael Mitchell of Chiquita Brands International, Inc.,+1-513-784-8959, mmitchell@chiquita.com
Web site: http://www.chiquita.com/http://www.freshexpress.com/