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Strategies & Market Trends : Speculating in Takeover Targets
ULBI 7.030+2.5%Oct 31 9:30 AM EST
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To: richardred who wrote (4751)2/20/2018 10:26:22 AM
From: richardred  Read Replies (1) of 7239
 
RE-8K SENEA snip> Reasons for exiting the business include; large operating losses, reduction in availability of peaches, rising costs for farmers and the Company, and import competition from China and Europe. The expected completion date is prior to December 31, 2018. The Company has developed a high-level estimate of $5 to $20 million for the total pre-tax P & L charges expected to be incurred in connection with the closure of the facility, primarily relate to cash payments for employee separation and impairment charges. In addition, an $8 million vendor advance may be required to be repaid (no P & L impact). The Company will provide an estimate of the amount or range expected to be incurred for each major type of cost associated with the plant closure when a good faith determination can be made. The amounts and timing of all estimates are subject to change until finalized. The actual amounts and timing may vary materially based on various factors.

Once the charges impairment charges are taken. .IMO a bost to earnings long term. This bodes well where margins are very thin and competition is fierce. Ironically the company just increased it's presents in the Maraschino Cherry business. I'm guessing it might now be the leading provider in that niche category? This should bring some pricing power. Last I knew, both McDonalds & Burger King offer M. Cherries on their shakes.

P.S.
snip>Gray & Company is a privately held corporation with more than a century of traditions a fruit processor, and today stands as the worlds largest producer of maraschino cherries.

  • Seneca Foods Completes the Acquisition of Gray & Company
    ... in Hart, Michigan, is the world’s leading provider of maraschino cherries and one of the largest providers of glace or candied fruit ...

    snip>Diana Fruit Company is the largest processor of cherries for fruit cocktail and the 3rd largest supplier of maraschino cherries in the United States,


  • Seneca Foods Completes the Acquisition of Diana Fruit Company
    ... Santa Clara, California, is one of the leading providers of maraschino cherries and fruit cocktail cherries. Its product suite is sold ...


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