Organic Food Products to Purchase Spectrum Naturals

Organic Food Products, Inc. (Morgan Hill, CA) has entered into a binding letter of intent to purchase Spectrum Naturals, Inc. for a combination of cash and stock. Precise terms of the agreement were not disclosed.

Spectrum Naturals, based in Petaluma, CA, produces natural and organic vegetable oils and condiments in North America and the Pacific Rim. All Spectrum Naturals' culinary oils are expeller-pressed, that is, mechanically extracted without the addition of chemicals, solvents or preservatives.

Among the product lines to be acquired by Organic Food Products are naturally processed vegetable oils, including ethnic-style seasoned oils, certified organic vinegars, canola mayonnaise, heart-healthy spread sold under the Spectrum Spread brand name, and fat-free and low-fat salad dressings. Excluded from the acquisition were Spectrum Commodities, an organic and natural ingredient business, and Spectrum Essentials, a nutritional line of oil-based supplements.

The transaction creates a strategic alliance between Organic Food Products and Spectrum Commodities. Jethren Phillips, CEO and founder of the two companies, entered the natural foods industry in 1972 and began manufacturing and distributing natural oils in bulk in 1984, launching the Spectrum Naturals brand two years later.

Commenting on the acquisition, Organic Food Products' CEO, James F. Swallow, said, "The execution of this transaction represents a strategic milestone in our vision of integrating and growing companies in the natural and organic foods industries. Acquiring Spectrum allows us to leverage their strong brand identity and shelf placement with the other fine brands in our product portfolio.

Organic Food Products, Inc. manufactures and markets organic food under the Garden Valley Organic, Parrot Brand, Millina's Finest, and Grandma Millina's Kids Meals brands. The company also manufactures certified organic juice products under the Cinagro and Energy Plus labels.

Edited by Pam Ahlberg