Agrilink Foods to Sell Private Label Business

Agrilink Foods, a wholly-owned subsidiary of Pro-Fac Cooperative (Rochester, NY) and Hoopeston Foods, Inc. (Hoopeston, IL) have signed a letter of intent for Hoopeston to acquire the assets of Agrilink's private label canned vegetable business. The transaction calls for Hoopeston to acquire three processing facilities, Arlington, MN, Hortonville and Cambria, WI, and the machinery and equipment used in the Fond du Lac, WI, facility.

The acquisition does not include Agrilink's Freshlike or Veg-All brands. Under the agreement, Agrilink and Hoopeston will enter into reciprocal co-packing agreements. Terms were not announced.

"This transaction clearly fits within our strategic plan," says Dennis M. Mullen, president and CEO of Agrilink Foods. "One of the key elements of this plan has been to focus on growing our frozen vegetable business. Hoopeston is focused on growing its canned segment, so this business is a good fit for them."

John Steele, president and CEO of Hoopeston Foods, adds, "The acquisition offers critical mass to our current private label business and strengthens our competitive position in the marketplace."

The parties are working towards finalizing the agreement, which is subject to board and regulatory approval. They expect to close in the near future.