GERMANTOWN, Md. and SUMMERLAND, British Columbia — Intrexon Corporation (NYSE: XON), a leader in synthetic biology, today announced it has entered into an agreement to acquire Okanagan Specialty Fruits (OSF), the pioneering agricultural company behind the Arctic® apple, the world's first non-browning apple. Through the acquisition, Intrexon expands its food programs to include trees yielding fruit that is more appetizing and convenient for consumers while providing economic benefit throughout the tree fruit supply chain.
"We are committed to bringing better versions of consumers' favourite fruits to their grocery stores and kitchens, while addressing additional novel traits in tree fruits that reduce waste and address supply chain challenges," said Neal Carter, Founder of Okanagan Specialty Fruits. "Joining forces with Intrexon and applying our combined technical know-how is an important step to introducing beneficial products for consumers and growers."
One of the fastest-growing categories of the fruit and vegetable industry is the fresh-cut segment, bolstered by the convenience factor and upward trend in consumption of healthier foods. Marrying the art of fruit breeding with cutting-edge science results in exciting new products that can benefit consumers and producers alike. For example, the Arctic® apple provides consumers with an answer to a pesky but common food issue without any flavor-altering, anti-browning additives. It is an alternative to current approaches to browning control, which are more costly and require the application of chemical solutions or antioxidants. Additionally, apples will be increasingly accessible to food service outlets, where consumers spend roughly 50% of their food dollars, because Arctic® apples solve both cost per serving and quality concerns associated with pre-cut apples.
"Okanagan is a world leader in the development of fruit-bearing plants to express enhanced, advantageous traits with tremendous potential to revolutionize the tree fruit industry," said Thomas R. Kasser, Ph.D., Senior Vice President and Head of Intrexon's Food Sector. "Through this acquisition, we can deliver more accessible and affordable choices of high-quality foods for an ever-growing population. We are extremely pleased that Neal Carter will remain with the company providing both the creative spirit and deep understanding of the tree fruit business that will assure continued future success in this expanding business opportunity."
Pursuant to the definitive agreement, Okanagan's stockholders will receive $31 million in Intrexon common stock and $10 million in upfront cash. Consummation of the transaction, anticipated in the first half of 2015, is subject to customary closing conditions.
About Okanagan Specialty Fruits
OSF is a dynamic agriculture biotechnology company based in Summerland, British Columbia, Canada that specializes in developing tree fruit varieties with novel attributes that benefit fruit producers and consumers alike. Founded in 1996, OSF is one of the first firms in the commercial tree fruit industry to pursue use of biotechnology directed breeding to deliver product innovations.
About Intrexon Corporation
Intrexon Corporation (NYSE: XON) is a leader in synthetic biology focused on collaborating with companies in Health, Food, Energy, Environment, and Consumer sectors to create biologically-based products that improve the quality of life and the health of the planet. Through the Company's proprietary UltraVector® platform and integrated technology suite, Intrexon provides its partners with industrial-scale design and development of complex biological systems delivering unprecedented control, quality, function, and performance of living cells. We call our synthetic biology approach Better DNA®, and we invite you to discover more at www.dna.com.
Trademarks
Intrexon, UltraVector and Better DNA are trademarks of Intrexon and/or its affiliates. Other names may be trademarks of their respective owners. Okanagan Specialty Fruits and Arctic are trademarks of Okanagan Specialty Fruits Inc.
Safe Harbor Statement
Some of the statements made in this press release are forward-looking statements. These forward-looking statements are based upon our current expectations and projections about future events and generally relate to our plans, objectives and expectations for the development of our business. Although management believes that the plans and objectives reflected in or suggested by these forward-looking statements are reasonable, all forward-looking statements involve risks and uncertainties and actual future results may be materially different from the plans, objectives and expectations expressed in this press release.
Source: Intrexon Corporation
