UNIMARK GROUP, INC. (THE)

UNIMARK GROUP, INC. (THE)

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Company Overview
UniMark Group, Inc., The (UniMark) is an American-based company that produces, processes, markets and distributes niche citrus and tropical fruit products, including chilled, frozen and canned cut fruits, citrus juices, and oils. The company has its head office in Irving, Texas.
UniMark operates through two business segments: packaged fruit and agriculture. The packaged fruit segment processes and packages chilled fruit, canned fruit, individually quick frozen fruits fruit, citrus cell-sacs and citrus drinks under the brand names Sunfresh, Fruits of Four Seasons and Flavor Fresh. The agricultural segment consists of the company’s lemon groves.
UniMar markets its products to its customers in the United States, Europe, Japan, and Hong Kong. The company is majority owned by Cardinal UniMark Investors, L.P, an investment company.
Business Summary
The UniMark Group, Inc. (UniMark) is a producer and marketer of branded fresh lemons with substantially all of its operations in Mexico. The Company conducts all of its operations through its Mexican operating subsidiary, Grupo Industrial Santa Engracia, S.A. de C.V. and a newly formed Delaware subsidiary, Sierra Foods, Inc. UniMark’s two lemon groves, El Cielo and Flor de Maria, are nestled in the foothills of the Sierra Madre Oriental Mountains in northeast Mexico. The groves span approximately 7,100 acres.
Description and history
The UniMark Group, Inc. (UniMark) is a producer and marketer of branded fresh lemons with substantially all of its operations in Mexico. The Company conducts all of its operations through its Mexican operating subsidiary, Grupo Industrial Santa Engracia, S.A. de C.V. and a newly formed Delaware subsidiary, Sierra Foods, Inc. UniMark’s two lemon groves, El Cielo and Flor de Maria, are nestled in the foothills of the Sierra Madre Oriental Mountains in northeast Mexico. The groves span approximately 7,100 acres.

With the sales of UniMark’s juice and oil division’s assets and the packaged fruit business segment, UniMark’s business consists solely of the fresh lemon business (agricultural business segment). On August 30, 2004, UniMark sold its packaged fruit business segment to Del Monte Corporation. The transaction included the sale of all outstanding shares of the Company’s Mexican subsidiary, Industrias Citricolas de Montemorelos, S.A. de C.V. (ICMOSA).

In 1998, UniMark entered into a 20-year Supply Agreement with an affiliate of The Coca-Cola Company (Coca-Cola) for the development of an 8,650-acre lemon project. In connection with the Coca-Cola transaction, UniMark elected to cease active cultivation of planted lemon tree seedlings and used some for replanting of damaged trees. In October 2004, the Company commenced actively cultivating the plantings that were abandoned in 2003.

In April 2003, UniMark consummated the portion of the Coca-Cola transaction pertaining to the rescission of all contract rights and obligations for the growing and processing of lemons. In this regard, the Company retained its lemon groves, which included all the land, irrigation systems and related agricultural equipment. As part of the sale agreement UniMark is contractually restricted from industrial processing the lemons and is limited to marketing the lemons solely as fresh fruit until July 30, 2007. In 2004, the Company commenced picking its lemons for the fresh market in late July.

The Company competes with Sunkist Growers, Inc., a cooperative of United States citrus growers.

Business Line
Produces, processes, markets and distributes niche citrus and tropical fruit products, including chilled, frozen and canned cut fruits, citrus juices, and oils
Subsidiary

Advisor
ERNST & YOUNG LLP
IPO date

US SIC Code
2033
Company Address
1425, Greenway Drive

City province or state postal code
75038, IRVING, TX
Phone: +1 972 518 1155
Fax:
Country address: UNITED STATES OF AMERICA
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