Developing Sun World is the new owner?s goal
Developing Sun World is the new owner?s goal
In the short term and "from a customer perspective," there will be "no change? in Sun World International?s operations following Black Diamond Capital Management LLC acquiring it, according to Christopher Kipley, a partner at Black Diamond.
Longer term, such changes as there may be "are largely going to be driven? by people who have been working at Sun World for years and who "know [the company] best," he said.
However, Sun World President and CEO Tim Shaheen and CFO Ray Speer will be leaving the company after a designated transition period, and an executive search firm will be begin to interview candidates for the company?s top executive posts shortly.
?We are excited about Sun World?s long-term value potential as a leading agricultural producer, and are committed to enhancing its growth and profitability," Mr. Kipley said. "We intend to build upon Sun World?s core strengths and its excellent organization so that the company will be able to continue to serve the needs of its customers.
?The acquisition is also good news for Sun World?s vendors and suppliers, as the company will now have a stronger balance sheet and significant cash resources," he said.
Black Diamond, which has offices in Lake Forest, IL and Greenwich, CT, is a leading privately held alternative asset-management firm with approximately $6 billion under management. As The Produce News previously reported, Black Diamond acquired Bakersfield, CA-based Sun World International Inc. for just under $128 million at auction on Jan. 13 (Jan. 24 issue, page 1), and the sale was approved the following day by the bankruptcy court, subject to closing, which was to constitute the final step in Sun World?s emergence from Chapter 11 bankruptcy proceedings.
Black Diamond announced the closing of the acquisition in a written statement dated Feb. 28. "Going forward, the company will do business under the name of Sun World International LLC," the statement said. In an exclusive interview with The Produce News, Mr. Kipley said Tuesday, March 1, "I think for now it will be steady-as-she-goes? for Sun World?s operations. "I think what we bring to the table that is new to the situation is a new less-leveraged capital structure, which should give the company more financial flexibility as well as financial support."
Black Diamond?s management team plans "to spend a lot of time with senior managers? at Sun World "talking about what their ideas are for growing the business. That is the real goal here. " We want to work with the people who have been working at Sun World for the last five, 10, 15 and 20 years, helping them achieve their goals."
Mr. Kipley confirmed that Mr. Shaheen and Mr. Speer would be leaving, noting that the fact was stated "in a bankruptcy court document." Both "have agreed to basically a transition period, where they will stay on with the company for up to a couple of months, after which they are going to go pursue other opportunities," he said.
?We really do appreciate not only their hard work through the closing but their willingness to stay on for a while and help us transition from former ownership to Black Diamond ownership. They have been a big help." Black Diamond has been "interviewing executive search firms," but had not yet selected one, he said. Once that selection is made, the chosen firm "will be working with us to fill both positions. Candidates will come both internally and externally."
In enumerating what he felt to be Sun World?s greatest strengths as a company, Mr. Kipley said, "first and foremost, and I don?t mean this as a cliche " it is the truth " is the employee base. There are a lot of people who have been with Sun World for 15 or 20 years." Sun World has "an incredibly dedicated work force " people who really care about the company and want to see it do well " and that is one of the things that makes it very attractive to us," he said. "People there are putting in the best effort possible, and our goals are aligned."
Beyond that, Sun World has an excellent varietal research program that has produced "several proprietary products? with significant potential, Mr. Kipley said. "That really differentiates Sun World? from the companies whose products are more in the nature of commodities.
Black Diamond will support continuing varietal research development, he said. The "great research? being done in that program "has resulted in a fabulous portfolio of proprietary products." Several "potentially new varieties? are currently in the pipeline? at various stages of development. Varietal development is a slow process, he said. "These things don?t happen overnight." But "given the company?s success in the past in creating new proprietary products, it is something we are optimistic they will be able to continue going into the future."
International licensing of Sun World?s proprietary varieties "is definitely a growth area," Mr. Kipley said. "Sun World has done a very good job working with international partners, introducing the varieties to them and entering into the licensing agreements."
The "game plan," he said, is to see the company grow in all areas, both domestically and internationally. "Going forward, we think there are a lot of people [within the Sun World organization] who are pretty excited about our involvement " who are excited about sharing ideas on how to grow the business " and with our support, we think that is very achievable."
Longer term, such changes as there may be "are largely going to be driven? by people who have been working at Sun World for years and who "know [the company] best," he said.
However, Sun World President and CEO Tim Shaheen and CFO Ray Speer will be leaving the company after a designated transition period, and an executive search firm will be begin to interview candidates for the company?s top executive posts shortly.
?We are excited about Sun World?s long-term value potential as a leading agricultural producer, and are committed to enhancing its growth and profitability," Mr. Kipley said. "We intend to build upon Sun World?s core strengths and its excellent organization so that the company will be able to continue to serve the needs of its customers.
?The acquisition is also good news for Sun World?s vendors and suppliers, as the company will now have a stronger balance sheet and significant cash resources," he said.
Black Diamond, which has offices in Lake Forest, IL and Greenwich, CT, is a leading privately held alternative asset-management firm with approximately $6 billion under management. As The Produce News previously reported, Black Diamond acquired Bakersfield, CA-based Sun World International Inc. for just under $128 million at auction on Jan. 13 (Jan. 24 issue, page 1), and the sale was approved the following day by the bankruptcy court, subject to closing, which was to constitute the final step in Sun World?s emergence from Chapter 11 bankruptcy proceedings.
Black Diamond announced the closing of the acquisition in a written statement dated Feb. 28. "Going forward, the company will do business under the name of Sun World International LLC," the statement said. In an exclusive interview with The Produce News, Mr. Kipley said Tuesday, March 1, "I think for now it will be steady-as-she-goes? for Sun World?s operations. "I think what we bring to the table that is new to the situation is a new less-leveraged capital structure, which should give the company more financial flexibility as well as financial support."
Black Diamond?s management team plans "to spend a lot of time with senior managers? at Sun World "talking about what their ideas are for growing the business. That is the real goal here. " We want to work with the people who have been working at Sun World for the last five, 10, 15 and 20 years, helping them achieve their goals."
Mr. Kipley confirmed that Mr. Shaheen and Mr. Speer would be leaving, noting that the fact was stated "in a bankruptcy court document." Both "have agreed to basically a transition period, where they will stay on with the company for up to a couple of months, after which they are going to go pursue other opportunities," he said.
?We really do appreciate not only their hard work through the closing but their willingness to stay on for a while and help us transition from former ownership to Black Diamond ownership. They have been a big help." Black Diamond has been "interviewing executive search firms," but had not yet selected one, he said. Once that selection is made, the chosen firm "will be working with us to fill both positions. Candidates will come both internally and externally."
In enumerating what he felt to be Sun World?s greatest strengths as a company, Mr. Kipley said, "first and foremost, and I don?t mean this as a cliche " it is the truth " is the employee base. There are a lot of people who have been with Sun World for 15 or 20 years." Sun World has "an incredibly dedicated work force " people who really care about the company and want to see it do well " and that is one of the things that makes it very attractive to us," he said. "People there are putting in the best effort possible, and our goals are aligned."
Beyond that, Sun World has an excellent varietal research program that has produced "several proprietary products? with significant potential, Mr. Kipley said. "That really differentiates Sun World? from the companies whose products are more in the nature of commodities.
Black Diamond will support continuing varietal research development, he said. The "great research? being done in that program "has resulted in a fabulous portfolio of proprietary products." Several "potentially new varieties? are currently in the pipeline? at various stages of development. Varietal development is a slow process, he said. "These things don?t happen overnight." But "given the company?s success in the past in creating new proprietary products, it is something we are optimistic they will be able to continue going into the future."
International licensing of Sun World?s proprietary varieties "is definitely a growth area," Mr. Kipley said. "Sun World has done a very good job working with international partners, introducing the varieties to them and entering into the licensing agreements."
The "game plan," he said, is to see the company grow in all areas, both domestically and internationally. "Going forward, we think there are a lot of people [within the Sun World organization] who are pretty excited about our involvement " who are excited about sharing ideas on how to grow the business " and with our support, we think that is very achievable."
