Written by The Business Journal Staff
A Florida-based distributor of “all-natural, biologically derived pesticides, fertilizers” and other products, has purchased a Visalia-based packinghouse for just shy of $1 million.
Vegalab US has purchased “substantially all of the assets” of M&G Packing for $854,452, including 11 acres of property and a 30,000 square-foot building as well as equipment, inventory, customers, suppliers and contract rights, according to a news release.
Vegalab purchased the business with $425,000 down and the balance on an 18-month promissory note with interest at 6 percent.
For the last 13 years, M&G Packing has packed mainly oranges and lemons, and will be operated as M&G Packing, LLC, as a wholly owned subsidiary of Vegalab, which is a public company traded on over-the-counter markets under the ticker symbol VEGL.
In a statement, David Selakovic, CEO of Vegalab Inc., said, “We acquired M&G to facilitate our long term strategic and financial growth. With several of M&G’s customers already using Vegalab’s all natural products to maximize the yield and increase the number of premium quality fruits produced in their citrus groves, we believe this acquisition will produce tremendous synergies between our packing business and our all-natural agro-chemical business. By seamlessly integrating the entire process from planting to packaging; by supplying growers with products that increase their yields of premium quality fruits; by packing their fruits efficiently; and by giving them access to our network of international buyers who pay the highest prices for premium quality citrus, we expect to grow both businesses rapidly.”
Vegalab products are distributed throughout North and South America.