Lifecore Biomedical, Inc., a fully integrated contract development and manufacturing organization (“CDMO”), announced that it has completed the sale of its Curation Food’s avocado products business for $17.5 million in cash, subject to certain customary net working capital adjustments.

James Hall, president and CEO, Lifecore Biomedical, said: “This transaction marks another step in our strategy to monetize our remaining Curation Foods assets and unlock the potential of Lifecore as a standalone CDMO business. We are pleased to demonstrate progress toward this outcome with the sale of the avocado products business and remain focused on exploring opportunities to monetize our final remaining Curation Foods asset, the Olive Oil & Vinegar business. We look forward to updating the market on our progress in due course.”

The company completed the simultaneous sign and close of the transaction in February of 2023.

Net proceeds from the transaction will be used to repay borrowings under the company’s credit facilities, which the company believes will drive further deleveraging and strengthen the company’s financial position, allowing management to focus greater resources and investment to Lifecore.