The Law Office of Lynnette Ariathurai A Professional Corporation

2 California produce companies in business merger

Two California companies with a 10 year history of working together have announced plans to combine forces with regard to their sales and marketing efforts. The business merger pits a fruit company that has an international presence with another company that enjoys significant strength and experience in domestic sales. Rivermaid Trading Co. is based in Lodi and is known for California pears and cherries. Wespak Sales has its base of operations in Dinuba and is a recognized figure in the marketing of stoned fruits and also is expanding into grapes, apricots, cherries and pomegranates.

A business merger on this scale obviously takes an immense amount of planning and preparation. While these two companies have been working together with cherries for the last decade, talks of a business merger were said to have started about three years ago. While the product lines of both companies will be expanded by this move, one stated goal is to offer buyers one stop shopping with a trusted business entity.

The ultimate intention is for sales to be consolidated. Nevertheless, each company will continue to operate separately, though with combined ownership and leadership. They will also join marketing efforts. Sales people will offer the products of both companies, offering buyers value-added service and hopefully returning more profit to the farm.

The business merger will create a $100 million entity. Each company has an important presence in crucial California growing areas. This significant undertaking could not be achieved without coordinated business planning and a joint effort to create a whole entity that is greater than the sum of its parts. To that end, the companies likely relied on professional assistance to negotiate and craft merger documents and a working agreement while ensuring that all laws and business regulations are observed.

Source: The Produce News, "Rivermaid and Wespak announce merger," Ryan Beckman, Oct. 17, 2012

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