The Canadian developer of the world’s first genetically modified, non-browning apple has been acquired by an American company.
The deal was announced mere weeks after the apple was approved for commercial use in the United States.
Okanagan Specialty Fruits is set to become a wholly owned subsidiary of Intrexon Corp., a synthetic biology company based in Germantown, Maryland.
The deal has yet to be finalized, but the agreement at this point would provide $10 million in cash and $31 million in Intrexon common stock to Okanagan Specialty Fruits shareholders.
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Okanagan Specialty Fruits’ development of the Arctic apple has been controversial as it has gone through studies, tests and eventual approval for use in the U.S.
The company said an email that it expected Canadian approval of the Arctic apple in the Golden and Granny Smith varieties to occur “in the near future, likely within the next couple of months.”
However, various groups opposed to GM food in general and the apple in particular have stated concerns about potential spread to other apple varieties, They also question the need and desirability of a non-browning apple.
“We don’t expect Intrexon’s acquisition of Okanagan Specialty Fruits to have any impact on the regulatory review processes in either the U.S. or Canada,” the company said in its email.
Okanagan Specialty Fruits, based in Summerland, B.C., said it plans to continue its work on GM apples and expects the first fruit to be available in small quantities by late next year.
“Combining our technical know-how with that of Intrexon is an important step in delivering novel traits to tree fruits. We have exciting product development opportunities in our pipeline, which we believe have the potential to revolutionize the tree fruit industry,” the company said.
Company founder Neal Carter will remain, as will Okanagan Specialty Fruits’ other employees once the deal is final. As a subsidiary, it will remain in Summerland.
Intrexon has a number of divisions within the synthetic biology realm, including an agricultural biotech division.
In a news release about the deal, Carter said the fresh-cut segment of the fruit market is growing quickly, and Arctic apples can take advantage of that trend.
Thomas Kasser, senior vice-president of Intrexon, said Okanagan Specialty Fruits is “a world leader in the development of fruit-bearing plants to express enhanced, advantageous traits with tremendous potential to revolutionize the tree fruit industry.”
