Ocean Spray, a U.S.-based agricultural cooperative has made its first international acquisition with a Chilean firm, Agrícola Cran Chile Limitada, for $28.5 million.
Cran Chile is one of the largest cranberry growing operations in the world.
"This acquisition will enable us to better compete in the global dried fruit market and provide long-term benefits in returns for our grower owners," Ocean Spray CEO Randy Papadellis said in a press statement. "It also represents a new frontier for our cooperative that will diversify our fruit supply with a counter-seasonal supply of cranberries from Chile, enable us to distribute dried cranberries from a strategic South American location to new and existing international markets, and increase our capacity to produce dried cranberries by 12m pounds annually."
The acquisition has allowed Ocean Spray to purchase Cran Chile's all land and assets such as receiving, storage, processing and distribution of dried cranberries. Cran Chile's 100 employees will also become a part of Ocean Spray once the deal is completed
However, the manufacturing plant will continue to operate from its existing location in Lanco, Region de los Rios in Chile.
"The opportunity represents an exceptional strategic fit for two industry leaders. In addition to becoming a major supplier of cranberries to Ocean Spray, we look forward to becoming a major member of the cooperative," said Gordon Swanson, managing partner of Cran Chile.
Ocean Spray, produced around 6.2 million barrels of cranberries in 2012. Apart from producing dried cranberries, the Cran Chile plant will also manufacture 50 brix cranberry juice concentrate with its new alliance, Nutralngredients-usa reported.
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