WAILUKU – Maui Land & Pineapple Co. sold its pineapple operation to the new Haliimaile Pineapple Co. for less than a third of its value, according to a report by ML&P.
In the filing dated Dec. 31, ML&P disclosed that it sold Haliimaile Pine its equipment, materials, supplies and customer lists valued at about $3 million for a price tag of $680,000, to be paid over five years.
The agreement, signed New Year’s Eve between the two companies, also granted Haliimaile Pine the exclusive rights to use Maui Pineapple Co. logos and trade names for a license fee based on sales volumes that would be around $20,000 to $30,000 each year.
Under the deal, Hallimaile will lease 950 acres of fields and 59,000 square feet of office and warehouse space for $420,000 per year for 20 years, with annual rent increases starting in 2014, with an option through the end of this year to expand the lease by up to 570 acres.
ML&P also agreed to provide water to the new operation in the deal, while Haliimaile Pine agreed to pay a license fee to harvest the old company’s existing pineapple crop.
Haliimaile Pine hired 66 of the 206 employees laid off by ML&P when it ended pineapple operations, and the new company had its first harvest Jan. 2.