TAMPA, Fla., May 10 /PRNewswire/ -- Lykes Bros. Inc. announced today it has entered into an agreement for an investment partnership with Engles Urso Follmer Capital Corporation that will result in the transfer of management and operating responsibilities for the company's vast juice operations. In return, Lykes will receive cash, notes and equity that will be used for expansion of its other business interests.
"This is a very exciting opportunity for Lykes, our employees, our shareholders, and the community. In anticipation of further industry consolidation, we are positioning our company for new investment opportunities while continuing to invest and expand our agricultural businesses," said Lykes Chairman John Brabson. "This allows us to refocus on the family's business heritage -- land management, cattle, agriculture, and insurance -- while remaining closely aligned with the citrus industry."
Todd Follmer, investment group partner, said the group's interest in food manufacturing and distribution and food service was critical to its desire to invest in privately held companies such as Lykes. "We look for strong companies with seasoned management, dedicated employees and a market share that has the potential to grow. Lykes has all of this and more."
"We believe the Lykes juice assets have significantly greater potential and will serve as a platform for growth as we take advantage of future acquisition opportunities within the Florida citrus industry," Follmer said. "This will mean greater visibility for the Lykes Dade City facility and assure its long-term viability."
Lykes subsidiaries to be transferred to Engles Urso Follmer under the investment agreement include Lykes Pasco, Inc., juice processing facility; Lykes Pasco Packing Co., fresh citrus packinghouse; Lykes Consumer Brands, Inc., marketer of Sunkist(R), Floridagold(R), OldSouth(R) and private label juices; Multi-Line Cans, Inc., juice can producer; Lykes Transport, Inc., the company's nationwide refrigerated trucking company; and Vitality Foodservice, Inc., which provides non-carbonated beverages to food service customers worldwide.
Not affected by the transition are Lykes Citrus Management Division, manager of the company's 40,000 gross acres of citrus groves; Southern Operating Division, manager of the Florida and Texas ranches with assets in cattle, sugarcane and forestry; Lykes Agri Sales, Inc., specializing in fertilizer blending and sales; and Lykes Insurance, Inc., providers of property and casualty insurance.
Brabson said approximately 1,400 employees will be transferred to the new company no later than the end of June. Lykes' corporate headquarters will remain in Tampa, and Engles Urso Follmer will operate the divisions under a name other than Lykes, he said. "This means we are not getting out of the citrus growing and juice business, but rather establishing a long-term financial partnership that unites the resources of both Lykes Bros. and Engles Urso Follmer," he added.
Engles Urso Follmer Capital Corporation is based in Dallas, Texas, and has a broad-based investment portfolio that includes Florida Global Citrus, Evercom and Electrolux.
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