MARION, N.Y. — Seneca Foods Corp. has reached an agreement to acquire the fruit business of Plant City, Fla.-based Paradise, Inc. for approximately $9,388,000.
Under terms of the deal, Paradise has agreed to a co-pack agreement in which it will process, manufacture and package its candied fruit products for Seneca for the 2019 season. Seneca will make weekly payments to Paradise based on an agreed upon budget, with a true-up payment by or to Paradise to be made at the end of the season.
Paradise’s decision to sell its fruit business follows an extended period in which the company explored a variety of strategic alternatives.
“After exploration of a range of strategic alternatives, the board determined that this all-cash transaction and the sale of our other assets offers the best opportunity for return for Paradise, Inc. and its shareholders,” said Randy S. Gordon, chief executive officer of Paradise.
Paradise brands include Paradise, Pennant, Sunripe, Mor-fruit, Dixie Brand and White Swan. The company also makes private label products for retailers, including Kroger Co., Safeway, Food Lion and Bi-Lo.