S&W sells off California seed facility

LONGMONT — S&W Seed Co. (Nasdaq: SANW) has sold off its alfalfa seed facility in Five Points, California, as part of a cost-cutting plan.

In a statement, the Longmont-based company said it sold off the plant for $2.25 million, which will be used to pay down debt linked to that building. The production will be shifted to the company’ plants in Nampa, Idaho, and New Deal, Texas, which will save the company an expected $1 million annually.

“The relocation of seed production from more expensive regions such as California to more cost-effective regions was highlighted as one of the best ways to effect immediate impact on achieving our goals for reducing (cost of goods sold) and improving gross margins,” CEO Mark Wong said in a statement.

All of the employees at the Five Points facility were offered jobs with the new owner. The identity of the new owner was not disclosed, and the deal has yet to appear in Fresno County, California, property records.

S&W was originally based in Sacramento but moved its headquarters and 25 corporate employees to Longmont in the fall of 2019 to be closer to its clients in the Midwest.

The company posted a $7.2 million loss in its most recent earnings report, which it attributed to seasonally low sales.

© 2021 BizWest Media LLC

 

LONGMONT — S&W Seed Co. (Nasdaq: SANW) has sold off its alfalfa seed facility in Five Points, California, as part of a cost-cutting plan.

In a statement, the Longmont-based company said it sold off the plant for $2.25 million, which will be used to pay down debt linked to that building. The production will be shifted to the company’ plants in Nampa, Idaho, and New Deal, Texas, which will save the company an expected $1 million annually.

“The relocation of seed production from more expensive regions such as California to more cost-effective regions was highlighted as one of the best ways to effect immediate impact on achieving our goals for reducing (cost of goods sold) and improving gross margins,” CEO Mark Wong said in a statement.

All of the employees at the Five Points facility were offered jobs with the new owner. The identity of the new owner was not disclosed, and the deal has yet to appear in Fresno County, California, property records.

S&W was originally based in Sacramento but moved its headquarters and 25 corporate employees to Longmont in the fall of 2019 to be closer to its clients in the Midwest.

The company posted a $7.2 million loss in its most recent earnings report, which it attributed to seasonally low sales.

© 2021 BizWest Media LLC