Nut Talk

Universal to sell nonleaf units Universal to sell nonleaf units

Saturday, December 16, 2006
Richmond-based Universal Corp. said yesterday that it plans to sell its remaining nontobacco agricultural-products businesses in six to 12 months.

Universal, the world's largest tobacco leaf merchant, said selling the units will allow it to focus more management and financial resources on its core tobacco business. The company buys tobacco from farmers in the United States and other countries, processes the leaf and sells it to cigarette makers.
Universal plans to sell Red River Foods Inc. a Richmond-based trading subsidiary that imports nuts and dried fruits; Nestmink Ltd., a London-based company that sells nuts, dates and apricots; and Madera Quality Nut Inc., a California nut-processing company.
The companies employ fewer than 150 people worldwide.
In the fiscal year that ended March 31, the businesses reported combined revenue of about $325 million and a combined operating loss of about $6 million, Universal said. The company's tobacco revenue was $1.8 billion, with operating profit of about $156 million.
The company said it will use proceeds from the sales to strengthen its balance sheet. The businesses will be reported as discontinued operations for the third quarter that ends Dec. 31.
In September, Universal sold the non- tobacco businesses of a Dutch subsidiary, Deli Universal Inc., to a new company owned by Deli managers and a Netherlands-based investment group. That business included lumber and building-products distribution, and rubber, tea and sunflower seed trading. -- John Reid Blackwell
Richmond Times-Dispatch
Saturday, December 16, 2006
Richmond-based Universal Corp. said yesterday that it plans to sell its remaining nontobacco agricultural-products businesses in six to 12 months.

Universal, the world's largest tobacco leaf merchant, said selling the units will allow it to focus more management and financial resources on its core tobacco business. The company buys tobacco from farmers in the United States and other countries, processes the leaf and sells it to cigarette makers.
Universal plans to sell Red River Foods Inc. a Richmond-based trading subsidiary that imports nuts and dried fruits; Nestmink Ltd., a London-based company that sells nuts, dates and apricots; and Madera Quality Nut Inc., a California nut-processing company.
The companies employ fewer than 150 people worldwide.
In the fiscal year that ended March 31, the businesses reported combined revenue of about $325 million and a combined operating loss of about $6 million, Universal said. The company's tobacco revenue was $1.8 billion, with operating profit of about $156 million.
The company said it will use proceeds from the sales to strengthen its balance sheet. The businesses will be reported as discontinued operations for the third quarter that ends Dec. 31.
In September, Universal sold the non- tobacco businesses of a Dutch subsidiary, Deli Universal Inc., to a new company owned by Deli managers and a Netherlands-based investment group. That business included lumber and building-products distribution, and rubber, tea and sunflower seed trading. -- John Reid Blackwell