Prima® Wawona Announces Plans to Implement Ownership Transition Through Court-Supervised Process; John Boken Comments
FRESNO, CA - Distinguished stonefruit provider Prima® Wawona recently announced that it is transitioning ownership of the company and recapitalizing the business. A recent agreement reached among the produce supplier’s lenders has resulted in plans to proceed with a transaction that will involve either the conversion of existing lender debt into equity ownership of the business or allow for a sale transaction to a third-party buyer.
“Over the last several years, Prima Wawona has grown tremendously. We recently completed the 2023 harvest season, during which our team grew, packed, and delivered more fruit across more acres than ever before,” shared John Boken, Prima Wawona's Chief Executive Officer. “At the same time, the business has faced significant headwinds, including increased costs and weather-related impacts, that have combined to make our existing capital structure unsustainable. Over the course of this year, we proactively evaluated options intended to enable us to build on our leading market position, our efficient and sustainable farming practices, and our history as an employer of choice.”
The ownership transition is expected to allow for the continued operation and long-term sustainability of the business, a press release stated. To facilitate the sale process, the company has initiated voluntary Chapter 11 proceedings, commencing the Chapter 11 case with the backing of its lenders, who entered into a Lender Support Agreement (LSA) among themselves.
As the release went on to note, the company will ultimately proceed with the highest and best offer via a court-supervised auction process.
“We are pleased that our lenders have reached an agreement and fully support this ownership transition that charts a path forward to strengthen Prima Wawona and position the business for long-term success,” Boken continued. “The court-supervised process allows for the possibility that a qualified third-party buyer will emerge as the owner of the business as an alternative to our lenders. The entire Prima Wawona organization is focused on working through this process as quickly as possible.”
Prima Wawona recently completed a successful harvest season and intends to continue providing its customers across the country with the highest quality fruit, remaining dedicated to delivering consistent and top-quality stonefruit to its customers.
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