The world’s leading tobacco company Universal Corporation entered into a definitive agreement to acquire an Illinois based company Silva International for $170 million. Silva is a leading natural, specialty dehydrated vegetable, fruit and herb processing company.
- After completion of this deal Silva will operate as part of Universal’s plant-based ingredients platform, which includes FruitSmart, Inc. and Carolina Innovative Food Ingredients, Inc.
- Silva was founded in 1979 and it procures over 60 types of dehydrated vegetables, fruits and herbs from over 20 countries around the world.
In January 2020, Universal Corporation had successfully completed its previously announced acquisition of FruitSmart, an independent specialty fruit and vegetable ingredient processor serving global markets.
The acquisition provides Universal with a new growth opportunity in an adjacent industry and represents a foundational step in building a broader agri-products services platform. FruitSmart supplies a broad set of juices, concentrates, blends, purees, fibers, seed and seed powders, and other value-added products to food, beverage and flavor companies throughout the United States and internationally through value-added processing of various fruit and vegetable products.
In February 2019, Universal Corporation announced that the Company’s subsidiary, Universal Leaf Philippines, Inc. (“ULPI”) increasing its purchases of leaf tobaccos in the Philippines, as part of a new leaf supply arrangement for the Philippines with Philip Morris International Management SA (“PMIMSA”). Previously, PMFTC, Inc. (“PMFTC”), an affiliate of PMIMSA, purchased certain quantities of leaf tobaccos produced by their own contracted grower base and processed that tobacco in their own facility.
Starting with the 2019 crop, PMFTC will purchase processed grades of tobacco from ULPI. The arrangement provided important supply chain efficiencies and is indicative of PMIMSA’s and Universal’s strong commitment to the grower communities in the Philippines and PMIMSA’s intent to remain a major purchaser of Philippine-grown leaf tobacco.
About Universal Corporation
Virginia based Universal Corporation is a global supplier of tobacco and agri-products. The company business includes procuring, financing, processing, packing, storing, and shipping tobacco and other agri-products. Universal Corporation is the worlds leading global leaf tobacco supplier. The company conducts business in more than 30 countries on five continents of the globe.