Okanagan Specialty Fruits to be Acquired by Interexon for $41 Million
GERMANTOWN, MD - Intrexon, a synthetic biology company, has announced an agreement to acquire Okanagan Specialty Fruits, the agricultural company behind the world's first non-browning apple, the Arctic® apple. The $41 million acquisition will allow Intrexon to expand its food programs to include tree fruit while providing economic support throughout the tree fruit supply chain.
"We are committed to bringing better versions of consumers' favorite fruits to their grocery stores and kitchens, while addressing additional novel traits in tree fruits that reduce waste and address supply chain challenges," said Neal Carter, Founder of Okanagan Specialty Fruits. "Joining forces with Intrexon and applying our combined technical know-how is an important step to introducing beneficial products for consumers and growers."
One of the fastest-growing categories of the fruit and vegetable industry is the fresh-cut segment, according to a press release. Marrying fruit breeding with cutting-edge science results in new products that seek to benefit consumers and producers alike.
Okanagan’s recently released product, the Arctic® apple, was created to provide consumers with an answer to the common issue of browning without any flavor-altering, anti-browning additives. It is an alternative to current approaches to browning control, which are more costly and require the application of chemical solutions or antioxidants. Additionally, apples will be increasingly accessible to food service outlets, where consumers spend roughly 50% of their food dollars because Arctic® apples solve both cost per serving and quality concerns associated with pre-cut apples.
"Okanagan is a world leader in the development of fruit-bearing plants to express enhanced, advantageous traits with tremendous potential to revolutionize the tree fruit industry," said Thomas R. Kasser, Ph.D., Senior Vice President and Head of Intrexon's Food Sector. "Through this acquisition, we can deliver more accessible and affordable choices of high-quality foods for an ever-growing population. We are extremely pleased that Neal Carter will remain with the company providing both the creative spirit and deep understanding of the tree fruit business that will assure continued future success in this expanding business opportunity."
In accordance with the agreement, Okanagan's stockholders will receive $31 million in Intrexon common stock and $10 million in upfront cash. The acquisition is anticipated in the first half of 2015 and will be subject to customary closing conditions.
