D.A. Davidson & Co. announced that it has served as exclusive financial advisor to Santa Clara-based Landec Corporation (NASDAQ: LNDC), a leading innovator of diversified health and wellness solutions with two operating businesses, Landec Natural Foods (LNF) and Lifecore Biomedical, in its acquisition of Los Angeles-based Yucatan Foods, LP. Under the agreement, Apio, Inc., a subsidiary of Landec Corporation, acquired all of the outstanding equity interests of Yucatan Foods for approximately $80 million, comprised of approximately $60 million in cash and approximately $20 million of Landec common stock.
Founded in 1986, Landec Corporation focuses on products for the natural foods and Contract Development and Manufacturing Organization (CDMO) markets. The company’s natural foods business is comprised of three brands, including Eat Smart® packaged fresh vegetables, O Olive Oil & Vinegar®, Now Planting® pure plant meal solutions, and Lifecore Biomedical is its CDMO business.
“We are excited for the team at Yucatan Foods to join Landec Natural Foods as we create a different kind of food company,” said Molly Hemmeter, president and CEO of Landec Corporation. “At Landec Natural Foods, we are reimagining the way fresh, plant-based foods are grown, prepared and delivered. The acquisition of Yucatan Foods accelerates the transformation of our packaged fresh vegetables business to a natural foods business focused on plant-based foods. We appreciate the extensive time and effort D.A. Davidson invested in partnering with us to close this transaction.”
“The addition of Yucatan Foods to the Landec platform is a tremendous fit, providing real momentum towards the growth of the LNF business,” said Jeff Cleveland, managing director and head of food, beverage and agriculture investment banking at D.A. Davidson. “We are pleased for both organizations and look forward to the next phase of development for Yucatan Foods as part of Landec Natural Foods.”
“We have a long relationship with the bankers at D.A. Davidson and appreciate their advice, counsel and hard work throughout the process,” said Greg Skinner, CFO of Landec Corporation. “From the outset, the D.A. Davidson team was committed to delivering the highest level of service necessary to evaluate and successfully close this transaction.”
Landec’s acquisition of Yucatan Foods enables Landec Natural Foods to grow, strengthen and stabilize its position in the natural foods market. The addition of Yucatan Foods will accelerate the development of critical mass in the Landec Natural Foods business by increasing revenues and profits, thereby better positioning Landec to evaluate long-term strategies for the company's two business segments in order to maximize shareholder value. Yucatan Foods is a leading processor and marketer of authentic Mexican guacamole made from 100% clean ingredients selling products under brands Yucatan® and Cabo Fresh®. The Yucatan brand provides traditional, authentic Mexican taste and can be typically found in the deli department of retail stores. The Cabo Fresh brand targets plant-forward food consumers, offering new experiences with guacamole and is typically found in the produce department.
D.A. Davidson’s investment banking division is a leading full-service investment bank that offers comprehensive financial advisory and capital markets expertise. The group has extensive transaction experience serving middle market clients worldwide across five industry verticals: consumer, diversified industrials, financial institutions, real estate and technology.
Together with its European strategic partner, MCF Corporate Finance, D.A. Davidson originates and executes transatlantic M&A transactions under the common brand of D.A. Davidson MCF International.
About D.A. Davidson Companies
D.A. Davidson Companies is an employee-owned financial services firm offering a range of financial services and advice to individuals, corporations, institutions and municipalities nationwide. Founded in Montana in 1935, with regional headquarters in Great Falls, Denver, Los Angeles, Portland and Seattle, the company has approximately 1,350 employees and offices in 25 states coast to coast.
Subsidiaries include: D.A. Davidson & Co., the largest full-service investment firm headquartered in the Northwest, providing wealth management, investment banking, equity and fixed income capital markets services and advice; Davidson Investment Advisors, a professional asset management firm; D.A. Davidson Trust Company, a trust and wealth management company; and Davidson Fixed Income Management, a registered investment adviser providing fixed income portfolio and advisory services.
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