Oatly Group gains on hybrid manufacturing deal with Ya YA Foods

Oatly AB

03/01/2023 13:58

** Shares of plant-based milk maker Oatly Group AB  OTLY.O 
gain 2.3% to $1.8 premarket
    ** Co announces long-term hybrid manufacturing partnership
with Ya YA Foods, a manufacturer of aseptic food and beverage
products
    ** OTLY to receive about $72 mln, with additional credit
amount towards future use of shared assets related to the Ogden,
Utah facility
    ** Under agreement terms, Ya YA Foods will acquire majority
of the assets (including mixing and filling equipment) used in
the operation and assume the property lease at Oatly's
production facility in Ogden
    ** "We believe an increased focus on our oat base
technology, innovation, branding and commercial execution will
better position Oatly to drive profitable growth, while reducing
the capital intensity of our future facilities" - Toni Petersson
    ** As of last close, stock had fallen 78.1% YTD
 (Reporting by Shristi Achar A in Bengaluru)
 ((Shristi.AcharA@thomsonreuters.com;))