Stake Signs Agreement to Acquire Wild West Organic Harvest Co-Operative Association
TORONTO--Oct. 10, 2002--Stake Technology Ltd.
(Stake) (Nasdaq:STKL)(TSX:SOY) today announced that it has signed an
agreement to acquire privately owned Wild West Organic Harvest
Co-Operative Association (Wild West), a Vancouver (Richmond), British
Columbia based distributor of organic and natural food products,
subject to mutual and customary due diligence. The proposed purchase
price is a combination of cash and notes and the acquisition is
expected to be accretive to earnings. Growing and profitable, Wild
West had sales in the past fiscal year of $16.5 million CDN. Closing
is expected to take place by the end of October.
Wild West distributes 2,400 products throughout Western Canada to
both the mass market and natural food retail outlets. It has an
historical annual growth rate of 43% over the last three years and
operates from a newly expanded 38,000 square foot refrigerated and
frozen warehouse facility. An organic industry fresh food pioneer with
26 years of operation, Wild West runs one of Canada's only certified
organic distribution centres.
Jeremy N. Kendall, Chairman and CEO of Stake Technology Ltd.,
commented, "Wild West represents the first step in creating a unique
organic and natural distribution network, which offers organic and
natural food product manufacturers the opportunity of achieving cost
effective and broad distribution throughout Canada. In addition, Wild
West provides Stake with the opportunity of distributing its own
organic brands along with branded products produced by Stake for other
manufacturers."
Stephen Easterbrook, President of Wild West who will continue in
that position once the acquisition is completed, said, "The
combination with Stake provides us with the resources to continue Wild
West's rapid sales and profit growth. We look forward to completing
arrangements and joining a company and corporate culture that will
allow us to maintain our vision of building and integrating supply and
distribution channels in the organic and natural foods market."
Stake Technology Ltd. is an owner/operator of high-growth ethical
businesses, focused on environmental responsibility and the health and
well being of its communities. For the last four consecutive years,
Stake was included in Profit magazine's `Profit 100' list of the 100
fastest growing companies in Canada. Currently, the company has three
business units: the Food Group, which specializes in
identity-preserved (IP) grain products and natural and organic food
products; from seed to packaged product; the Environmental Industrial
Group; a producer, distributor, and recycler of industrial materials;
and the Steam Explosion Technology Group who market clean pulping
technologies. Each of these business units has proprietary products
and services that give it a solid competitive advantage in its sector.
Websites: www.staketech.com www.sunrich.com www.bei.ca
www.steamexplosion.com www.sunrichvalley.com www.organickitchen.ca
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This news release may contain forward-looking information. |
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Actual future results may differ materially. The risks, uncertainties, |
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and other factors that could influence actual results are described in |
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the Company's Annual Report to shareholders and in SEC reports. |
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--30--kmr/cl*
| CONTACT: |
Stake Technology Ltd. |
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Jeremy N. Kendall, Chairman & C.E.O. |
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John D. Taylor, President & C.O.O. |
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Susan Wiekenkamp, Information Officer |
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Tel: 905-455-1990 |
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info@staketech.com |
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or |
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Investor Relations Counsel |
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The Equity Group Inc. |
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Linda Latman, 212/836-9609 |
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llatman@equityny.com |
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www.theequitygroup.com |
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