Sep 2, 2021

Michigan’s Oceana Foods to begin asset sale process

New Mill Capital, a national food processing asset disposition firm has been engaged by Cherry Central Cooperative to sell the Oceana Foods dehydrated product plant located in Shelby, Michigan. The company announced in July that it would idle the plant and has recently made the decision to sell.

After operating the 150,000-square-foot facility for decades including a large building expansion and capital equipment investment in 2016; production capacity at other facilities and crop conditions led Cherry Central to make the tough decision to close the facility at the end of August.

The Oceana Foods plant specializes in the processing and drying of fruit grown in and around Michigan. Cherry Central CEO, Melanie LaPerriere, left the door open to re-starting the plant, but the current direction is seeking a new operator that can utilize the processing and drying capacity in place.

“The earliest Cherry Central may reopen the Oceana plant will be August 2022, and we feel that there is an opportunity to find a buyer who will continue to provide job opportunities in the Shelby, Michigan area. Though we hoped to reopen the facility in the future, we have determined the right move is to sell and allow a new operator to utilize the plant’s many capabilities” LaPerriere said in a news release.

The plant features a large amount of blending, drying and evaporative capacity along with retail and foodservice packaging lines. Much of the current equipment in place was part of the 2016 expansion and the property has a large amount of wastewater capacity.

“In 2016, they took this plant from standard fruit drying to a multi-use, state of the art operation,” said Eric Weiler, Managing Principal at New Mill Capital. “The nice thing about this plant is that you have the ability to manufacture and package a number of different dried products in multiple food processing verticals. We’ll cast a wide net and I expect a good deal of interest.”

Parties interested in acquiring the plant should contact Eric Weiler at New Mill Capital – [email protected].

Cherry Central Cooperative made the following announcement on July 2, 2021:

“Due to an unexpected year-over-year Montmorency tart cherry crop shortage in Michigan, Cherry Central Cooperative has announced a closure of operations at the Oceana Foods Facility in Shelby, Michigan. The facility, located at 168 Lincoln Street in Shelby, Michigan, will close on August 31st, 2021, with no fixed date to reopen.

The Oceana Foods Facility specializes in the processing and drying of Montmorency tart cherries grown in and around Michigan. Recent updates to harvest estimates have confirmed that, due to extreme weather-related crop reductions, there will not be a sufficient Montmorency tart cherry crop in Michigan to maintain production at the Oceana Foods Facility. The closure will affect 74 employees across three shifts.

“Our business and livelihoods rely profoundly on a successful Montmorency tart cherry crop each year, and it was painful to learn that poor weather conditions will yield a much lower crop than anticipated for the second year in a row,” said Melanie LaPerriere, CEO at Cherry Central Cooperative. “Our commitment is first to our dedicated employees who will be negatively impacted by the closure. We are working with our employees, their families and the community to assist in their transition in any way we can.”

Staff members who stay at Oceana Foods until the facility’s August closure will receive financial incentives in key departments as well as assistance in filing for unemployment benefits post-closure. A select few employees will remain on-staff to maintain the facility throughout the duration of the shutdown. Cherry Central’s board hopes to eventually reopen the facility and remains in the process of exploring the facility’s options.

“Though we hope to reopen the facility in the future, we don’t currently have a timeline in place and will need to reevaluate later in the year as more information becomes available,” said LaPerriere. “The earliest the facility could reopen would be August 2022, when we would be preparing for the 2022 cherry crop.”

Cherry Central’s board hopes to eventually reopen the facility and remains in the process of exploring the facility’s options. The Cherry Central staff will inform current employees of any reopening plans.

Cherry Central is preparing to transition processing to an affiliate facility upon approval of the customer. Representatives of Cherry Central will reach out to their contacts as more information becomes available.

Cherry Central is a farmer-owned cooperative that believes we are stronger when we work together. Today, Cherry Central comprises hundreds of small family farms. Just as our farmers have been innovating for generations, so is Cherry Central. Cherry Central is committed to the power of good. We lead with service, focusing on creating good and nutritious food. If there’s one thing we know, it’s that good and nutritious food has a direct and powerful impact on the health of people and the planet.

New Mill Capital is a privately-held asset acquisition and disposition firm specializing in food processing and  beverage plant turnkey sales and disposition programs. New Mill is a national leader in the purchase and sale of idle manufacturing plants, equipment packages and has also repurposed over 20,000,000 square feet of manufacturing facilities.