The US company Frutura announced today that it was awarded the assets of Citrícola Salteña (Caputto) in the judicial auction carried out by the Commercial Defense League. In this way, through the constitution of the company “Frutura Uruguay, which will consolidate said assets, it is established as a new and significant operator in the country’s citrus activity,” the company reported in a statement.
Among the acquired assets, 3 thousand hectares with citrus plantations stand out (mainly oranges, lemons and tangerines), 1 fruit packing plant for export and a citrus fruit processing plant for the production of high quality juices located in the city of Salto. The main export destinations for all its production are customers in Europe, North and South America, the Middle East and Southeast Asia.
“This purchase represents a new milestone of growing importance in Latin America for Frutura Inc., which last year also acquired the Peruvian company Agrícola Don Ricardo, anticipating with this new step important synergies in the region, thanks to its growing global network of customers and strategic partners” the company explained.
Citrícola Salteña filed for insolvency proceedings in 2019 and the Commercial Defense League (Lideco) has served as trustee ex officio since then. After a due diligence process Frutura was the only bidder in the auction that was endorsed by the Justice.
Caputto had a liability of around US$50 million and its main creditor was Banco República (BROU), with which it had a liability of around US$20 million. The rest of the debts were made up of commercial liabilities and liabilities from different suppliers. The company had secured debt of US$35.7 million, while another US$11 million was unsecured.
The auction base for Caputto’s assets was US$36.5 million and creditors will be charged in proportion to the amount paid by the buyer.
as he knew The Observer, the buyer will pay 50% of that amount (about US$18 million) in March upon delivery of the assets. There, Frutura is expected to take charge of the new harvest, something very important to give continuity to Caputto’s industrial process. BROU had stated at the time that it was willing to finance the remaining 50% of the operation. The sources indicated that there are “advanced” conversations about it but it is not yet closed.
For BROU, “very good news”
BROU president Salvador Ferrer told The Observer that it is “very good news” the fact that an investor has emerged interested in taking over the “en bloc” project of the Caputto industrial complex. The chief added that the announcement had to be taken with “prudence” until the company integrates 50% of the operation in the next 15 days. However, the private company had previously made a deposit, which had been accepted by Lideco, so it is estimated that the operation will end without problems.
Ferrer insisted that BROU is convinced that the “project is viable”, in addition to being a source of employment for some 2,000 families in Salto. Ferrer assured that there are “encouraging perspectives” for the future of Citrícola Salteña, taking into account the business plan presented by the private sector.
“Acquiring these assets and establishing Frutura Uruguay means a lot to me personally and will be a powerful value proposition at the service of our clients,” said David Krause, CEO of Frutura.
“The high quality fruit available, Uruguay’s strategic position for global supply and the productive potential that we identified convinced us of this agreement. We plan to selectively infuse capital; review the offers of existing varieties; and improve process efficiency. We hope that each of these movements will be significant for the growth of Frutura Uruguay”, he added.
Caputto has assets valued at the time for about US $ 70 million, which depend especially on the valuation of citrus plantations, which include fruit varieties, infrastructure, irrigation system, accesses and greenhouses, among others. The giant from Salta has about 3,500 hectares (ha), of which 1,500 (ha) were destined for varietal reconversion, due to the fact that in 2016 there was a change in consumer preferences. The firm has an industrial packaging plant for fresh fruits and another for juices of 26 thousand square meters and state-of-the-art technology. The industrial complex generates direct employment for some 1,000 people in Salto and indirect employment for another 1,000.
The executives left in charge
Romain Corneille, who was instrumental in discussions during Frutura’s due diligence, has been appointed the new CEO of Frutura Uruguay. Corneille previously served as CEO of San Miguel Global, based in Argentina, and has extensive experience in Latin America.
Alejandro Buratovich, who lives in Uruguay and will serve as local representative of Frutura, was appointed general managerl. Corneille and Buratovich worked closely at San Miguel Global for several years.
Citrícola Salteña is also known as a pioneer in introducing innovation and automation in agriculture, including the early adoption of technology in orchards. They continued to invest in agronomic research and were the first to design best-in-class packing, grading and sorting systems in Uruguay, ensuring superior fruit consistent in size and color. Frutura Uruguay will build on this legacy of innovation through the collaboration and sharing of best practices that is part of becoming a Frutura group company.
About Fruit
Frutura is a global sales and marketing network committed to supplying premium fruit to international customers, 365 days a year. Today the company Dayka and Hackett in the California Valley, Agrícola Don Ricardo in Peru, are integrated into the Frutura network; and TerraFresh Organics with operations in the US, Mexico and several Latin American countries.
