TORONTO — Oat drink company Oatly Group AB has signed a manufacturing partnership deal with Ya YA Foods Corp., a Toronto-based contract beverage manufacturer.
Under the agreement, Ya YA Foods will acquire a majority of the assets and assume the property lease at Oatly’s production facility in Ogden, Utah.
It will also take over the construction and lease of a facility in Fort Worth, Texas.
Oatly will retain ownership and operation of proprietary oat base production lines in each location.
Oatly will receive about US$72 million, plus an additional credit amount towards future use of shared assets related to the Ogden facility and an additional credit toward ongoing construction at Fort Worth.
The deal is expected to close in the first quarter of 2023.
This report by The Canadian Press was first published Jan. 3, 2023.
The Canadian Press