BAKERSFIELD, Calif. (KGET) — Grimmway Farms, one of Kern’s largest employers and the world’s biggest producer of carrots, may be up for sale.
The business publication mergermarket.com says Grimmway has hired consultants at Goldman Sachs to help explore a sale. The process is at an early stage, according to the article.
Grimmway declined to comment on the report.
But last week the company issued a statement saying it was “considering exciting opportunities to better serve our customers and position the Company for the future.” The family-owned business, which started as a roadside fruit stand, said it remained focused on continuing to provide “unparalleled produce and customer service,” as well as thousands of jobs across the country.
Mergermarket.com says Grimmway generates about $130 million a year in pre-tax earnings. It speculated the sale could be worth ten times that figure.
The website attributed information on a possible sale to “three sources familiar with the situation.” Two sources said books have been sent to prospective suitors.
The publication says it’s unknown if the recent wildfires have impacted the business, and the company is expected to keep the organic farmlands for carrots and lease it to third parties. In addition to carrots, Grimmway also produces more than 65 different organic vegetables.
Last year, the company acquired the Georgia and Florida processing facilities of Generation Farms. Financial terms weren’t released.
Founded in 2013, Generation Farms processes fruit and vegetables for southeastern states.