Dominion sells two of its stalls and apple juice business
by Joel Gebet | July 20, 2009
Dominion Citrus Ltd. has sold two of its four stalls at the Ontario Food Terminal in Toronto.
The firm's parent company, the Dominion Citrus Income Fund, said in a press release in late June that it had "accepted an offer to sell a renewable lease for two type-A selling units located at the Ontario Food Terminal for an aggregate purchase price of $3.5 million (Canadian). The transaction is intended to enable DCL to focus its wholesale business on fewer but more profitable product lines in its remaining two units while reducing its operating costs and strengthening its balance sheet. This transaction is scheduled to close 60 days after receipt of approval of the sale from the landlord, the Ontario Food Terminal Board."
Gianfranco Leo, administration manager of the Ontario Food Terminal Board, said that he was not able to comment on who purchased the stalls, but he told The Produce News that he saw the move as a positive one for the terminal and believed it would help increase the terminal's on-site cold storage revenues.
The sale of the stalls comes on the heels of the late-March sale of Dominion Citrus Income Fund's Apple Valley Juice LP division to Quebec-based A. Lassonde Inc., one of the larger fruit juice manufacturers in Canada.
According to the press release, "Apple Valley has received gross proceeds of $1,535,821.79 (Canadian), including cash of $1,385,821.79 (Canadian) and a short-term promissory note for $150,000. Apple Valley has been engaged in the business of extracting and processing the juice of apples and selling apple juice to industrial and corporate customers. A. Lassonde has purchased the name 'Apple Valley' and Apple Valley Juice LP is in the process of changing its name to an unrelated name."
Telephone calls for comments from the Dominion Citrus Income Fund were not returned.