Stake Signs Agreement to Acquire Wild West Organic Harvest Co-Operative Association
TORONTO--Oct. 15, 2002--Stake Technology Ltd.
(Stake) (Nasdaq:STKL) (TSX:SOY) today announced that it has signed an
agreement to acquire privately owned Simply Organic CO. LTD. (Simply
Organic), a Toronto based distributor of organic and natural food
products. Closing, which is subject to mutual and customary due
diligence, is scheduled for November 30, 2002. The proposed purchase
price has not been disclosed but will be comprised of a combination of
cash and notes. This acquisition is expected to be immediately
accretive to earnings. Simply Organic will celebrate its second year
in business in November of this year and forecasts revenue of
$5.0 million CDN in its current fiscal year.
Simply Organic distributes a broad range of regionally and
internationally grown and produced certified organic food products
including Stake's line of organic dairy products, sold under the brand
name mu, throughout much of Ontario to both the mass market and
natural food retail outlets. It is currently expanding to a new 14,000
square foot refrigerated and frozen warehouse to serve as the
distribution hub for its extensive full line of certified organic food
products.
Jeremy N. Kendall, Chairman and CEO of Stake Technology Ltd.,
commented, "Simply Organic represents the second step in creating a
unique organic and natural distribution network, and comes on the
heels of last week's announcement of the proposed acquisition of Wild
West, a company with a similar mission operating in Western Canada. We
believe that these are among the best companies in this market and
offer us a platform from which to expand product and market
distribution geographically."
Simply Organic's President and founder, Michael Fronte, who will
continue in that position once the acquisition is completed, said,
"Partnering with Stake and the other food companies under its
corporate umbrella makes sense. The efficiencies of integrated
purchasing, cross selling opportunities, the potential to enhance our
product line and most importantly, to be part of a national organic
product distribution company, are among the reasons we are excited
about this transaction."
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
www.wildwestorganicharvest.com
Note: |
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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CONTACT: |
Stake Technology Ltd. |
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Jeremy N. Kendall, John D. Taylor or Susan Wiekenkamp, |
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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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