Organic Food Products and Spectrum Naturals to Merge

Organic Food Products, Inc. and Spectrum Naturals, Inc., and its affiliate Spectrum Commodities, Inc., have entered into a letter of intent to merge the companies.

In addition, OFPI has entered into a letter of intent to acquire all outstanding shares of Organic Ingredients, Inc.

Jethren Phillips of Spectrum Naturals will assume the role of CEO and chairman of the board of the merged company.

"The Organic Ingredients acquisition, when consolidated with the Spectrum Commodities business, will create one of the leading organic and natural raw material suppliers to the natural products industry. Joseph Stern, the current president of Organic Ingredients, will be responsible for the combined business," stated Phillips.

The merger and related acquisition are subject to shareholder approvals and the completion of definitive agreements typical for these types of transactions. It is anticipated the transactions will be completed by early May.

Organic Food Products, Inc. manufactures and markets organic food under the Millina's Finest, Garden Valley Organic, Parrot, Cinagro and Energy Plus labels. The company produces bottled sauces, salsas and juices at its manufacturing facility in Morgan Hill.

Spectrum Naturals manufactures and markets organic and all natural oils, vinegars and condiments under the Spectrum Naturals label and a leading line of essential fatty acids nutritional supplements under the Spectrum Essentials label.