Inventure Foods Inc (NASDAQ:SNAK) shares were popping Wednesday as the company announced that it’d be selling one of its largest segments.
The company has reportedly signed a deal with the Oregon Potato Company, selling its frozen business for $50 million. The brands that will be sold include Rader Farms and Willamette Valley Fruit Company.
Inventure Foods expects the deal to be completed sometime before the end of the month. CEO Terry McDaniel said that the move is a significant step forward under the company’s strategic and financial business review.
“We intend to use the proceeds from the transaction to further reduce our debt and improve our overall financial flexibility in order to allow us to focus on continuing to grow our leading snack business as we finalize our strategic review,” he added
The company says it does not comment on anything further regarding its strategic and financial review until the board approves it. The proceeds from the deal will be used to repay the company’s debt with a number of major financial institutions and lenders.
“We look forward to completing the acquisition of the Rader Farms and Willamette Valley Fruit brands and believe they will be a strong complement to our existing potato, vegetable and fruit business,” said Frank Tiegs, President of Oregon Potato Company in a written statement.
SNAK shares gained 23.9% early Wednesday.