Benzinga | Aug 25, 2020 08:01AM EDT

Landec To Divest Hanover Manufacturing Operations For $8.7M

SANTA MARIA, Calif., Aug. 25, 2020 (GLOBE NEWSWIRE) -- Landec Corporation (NASDAQ:LNDC) ("Landec" or the "Company"), a diversified health and wellness Company with two operating businesses, Curation Foods, Inc. ("Curation Foods") and Lifecore Biomedical, Inc. ("Lifecore"), announced today the entry into a definitive agreement to sell the Company's Hanover manufacturing facility and related assets for an aggregate purchase price of $8.7 million.The Company intends to consolidateits Hanover facility operations into its facilities in Guadalupe, California and Bowling Green, Ohio.



Theagreement to divestthe Hanover manufacturing operations is the latest step of Project SWIFT, asthe Company continues to focus on creating shareholder value across the enterprise. Project SWIFT is designed to identify opportunities to transform the Company's business with a focus on maximizing strategic assets, optimizingits operational network and right-sizing the organization. The transaction is expected to close in the first week of September, subject to customary closing conditions. As previously announced on August 7, 2020, Landec completed the asset sale and lease assumption of its pre-operational salad dressing manufacturing facility based in Ontario, Californiafor $4.85 million.

"The agreement to sell the Hanover facility announced today, together with the completion of our other previously announced asset sales related to the Curation Foods business, delivers on the Company's commitment to streamline the business by divesting non-strategic assets to help deliver sustainable profitable growth," said Landec's President and CEO Dr. Albert Bolles. "While we recognize that the execution of certain actions associated with Project SWIFT has been challenging in light of the global pandemic, we intend to continue to build on the significant progress made with respect to our value creation plan and remain dedicated to advancing our strategic vision and deleveraging the business under these new conditions."