Los Angeles-based guacamole company Yucatan Foods was acquired by fresh food firm Landec Corp for $80 million in a move that bolsters the California firm’s natural foods market position.
The transaction included $60 million in cash and $20 million of Landec stock, which currently trades at $14.90 a share.
Santa Clara, Calif.-based Landec said that its Apio business unit acquired Yucatan, which processes and markets two guacamole brands, Yucatan and Cabo Fresh. Yucatan has annual revenue of $55 million to $60 million and is expected to add to Landec’s earnings beginning in fiscal year 2020, the company said in a statement.
Revenues with Yucatan are projected to grow substantially in the “rapidly growing guacamole category,” Landec stated.
The U.S. guacamole market in the United States is about $375 million and is growing at about 20 percent a year, according to data provided by IRI, a market research company in Chicago.
Finance reporter Pat Maio can be reached at email@example.com or (323) 556-8329.
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