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As part of its ongoing strategy to focus on large-scale greenhouse operations, Village Farms has sold its Pennsylvania-based Ringgold Greenhouse Facility in a move that will also have strategic geographical incentives.
While Vancouver, B.C.-based Village Farms has owned and operated Ringgold since 1993, the recent sale integrates a marketing agreement that enables the former to continue the sales, marketing and distribution of the Ringgold facility, as well as for another greenhouse facility of the buyer, Intergrow Portageville, Inc.
Village Farms CFO Stephen Ruffini said the company began paring some of its smaller greenhouse facilities in 2006 and 2007, with the latest deal representing its third and final sale of the smaller greenhouse facilities.
"It's really a strategic purchase for us, because we wanted to continue doing the marketing and being the distributor of the Ringgold facility, and now we also get to be the distributor for the extra 15 acres in Portageville," said Ruffini, adding that the combined arrangement now offers distribution for 25 acres in the Northeast marketplace. "We became a bigger supplier for that market. It enhances our ability to supply local produce to Northeast retailers."
The buyer, Mario van Logten, is a former employee of Village Farms, who over the course of 15 years has operated three distinct greenhouses, among them the Ringgold facility, for Village Farms. Van Logten has additional greenhouse facilities, including part ownership in the Portageville, N.Y-based Intergrow in the greater Buffalo/Rochester, N.Y. area.
Village Farms' customer base in the Northeast will continue to be supplied with premium product marketed under the Village Farms brand. In addition, the supplier's New York and Pennsylvania customers will be supplied with locally grown produce.