Canada’s Organto Foods has agreed to sell its processing plant and related assets located in Patzun, Guatemala, to Organizacion de Marcadeo, a company controlled by Arturo Bickford and Jorge Guzman Efrain, known as Omega.
Under the agreement, Omega will acquire land, buildings and processing equipment for a consideration of $0.85m.
Organto Foods said that with the shift in its organic foods business to an asset-light business model, it was no longer beneficial for the company to maintain the assets.
Organto Foods chair and interim CEO Steve Bromley said: “As a result, we feel it is in the company’s best interests to dispose of these assets and put them into the hands of a party that is committed to the local growing area and economy.
“The disposal of this asset is expected to improve our balance sheet and reduce ongoing operating costs as we continue to focus on our asset-light organic vegetable and fruit operating platform.”
Organto’s organic fruit and vegetable operating platform makes use of an asset-light business model, sourcing fresh value-added organic products from strategic grower partners in various regions including Mexico, Peru, Argentina and Zimbabwe to distribute to fast-growing consumer markets.
The company’s existing distribution is concentrated on European markets, with a focus on the development of the Organto ‘I am Organic’ brand.
