Stake Technology Announces Agreement to Acquire the Business and Operating Assets of SIGCO Sun Products, Inc.
TORONTO--Oct. 21, 2003--Stake Technology Ltd. (To
become "SunOpta Inc." effective October 31, 2003) (Nasdaq:STKL)
(TSX:SOY) announced today that it has reached an agreement to acquire
the business and operating assets of SIGCO Sun Products, Inc.
("SIGCO") of Breckenridge, Minnesota.
SIGCO is a world wide supplier of sunflower products and is fully
integrated from the sale of sunflower seed to farmers through
processing the contracted crop into finished in-shell and kernel
sunflower products. The company operates four facilities located in
Minnesota, North Dakota and Kansas.
SIGCO markets its non-genetically modified sunflower products
throughout the United States and to international markets in Europe,
Asia and the Americas. The company is a leader in high-oleic sunflower
seeds which have a shelf life five times the traditional sunflower
kernel, large in-shell sunflower seeds with increasing demand in world
wide markets, and bakery kernels, where the company has developed a
unique low cost production process to service North American and
International markets.
SIGCO is highly compatible with Stake's vertically integrated
business model. SIGCO's locations in the Mid-Western United States
facilitate the integration of management and marketing strategies with
Stake's Grains and Soy Products Group.
SIGCO, which has a history of profitability, had revenues of
approximately $20 million in the last twelve months of operations.
Compensation in this transaction includes cash and the assumption
of certain liabilities. No goodwill will initially be recorded as a
result of this transaction. Closing of the transaction is subject to
completion of definitive agreements and is expected by no later than
October 31st.
Jay Schuler, who will remain as the President of SIGCO, commented
"The Schuler family has been a pioneer in the confection sunflower
business, dating back to 1958. We are happy to offer our producers a
great alternative crop to grow and in turn provide excellent food
ingredients to our ultimate customer, the food industry. Our SIGCO
team has done an outstanding job of adding value to sunflower over the
years. The Stake 'Sunrich Group' is a very successful company, with a
similar objective, adding value to nutritional food. This transaction
is a positive for all; producers, ingredient customers, employees, and
stockholders. I expect the development of value added products
utilizing the healthful sunflower to increase with the combined
operations. This is a very good fit."
Jeremy Kendall, Chairman and CEO of Stake, commented that, "The
acquisition of the business and operating assets of SIGCO is a great
addition to our vertically integrated Food Group. In addition to our
current portfolio, SIGCO extends the breadth of our product offering
of healthy food products to our customers."
Stake Technology Ltd., to become SunOpta Inc. effective October
31, 2003, is an owner/operator of high-growth ethical businesses,
focusing on integrated business models in the natural and organic food
markets. For the last five consecutive years, Stake was included in
Profit magazine's 'Profit 100' list of the 100 fastest growing
companies in Canada. The company has three business units: the Food
Group, which specializes in sourcing, processing and distribution of
natural and organic food products; integrated from seed through
packaged products; the Environmental Industrial Group; a producer,
distributor, and recycler of environmentally friendly industrial
materials; and the Steam Explosion Technology Group who engineer and
market clean pulping systems using patented steam explosion
technology. Each of these business units has proprietary products and
services that give it a solid competitive advantage in its sector.
Websites: www.staketech.com or www.sunopta.com www.sunrich.com
www.bei.ca www.steamexplosion.com www.sunrichvalley.com
www.organickitchen.ca www.wildwestorganicharvest.com
www.kettlevalley.net www.opta-food.com www.proorganics.com
CONTACT: Stake Technology Ltd.
Jeremy N. Kendall, Steve Bromley or Susan Wiekenkamp
905-455-2528, ext 103
info@staketech.com
or
Investor Relations Counsel
The Equity Group Inc.
Linda Latman, 212-836-9609
www.theequitygroup.com
SOURCE: Stake Technology Ltd.