Landec Corp. has acquired guacamole company Yucatan Foods for approximately $80 million, reports Reuters. Yucatan processes and markets two guacamole brands, Yucatan and Cabo Fresh.
Landec is a fresh food supplier to retailers like Walmart Inc., and the acquisition should strength the company's position in the natural foods market. According to Landec CEO Molly Hemmeter, the acquisition of Yucatan Foods is expected to deliver incremental revenues and profits, and the guacamole business is a higher gross margin business because it has more stable costs than Landec's existing packaged fresh vegetable business.
Yucatan reports annual revenue of $55 million to $60 million, and Landec believes the acquisition should add to its earnings beginning in fiscal year 2020, according to the report. Full Story
Related: Avocados a Top Seller At Retail; FDA Finds Hazards in Guacamole, Herbs.
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