SunOpta Announces that Opta Minerals Inc. Acquires Shares of Bimac Corporation
TORONTO--Oct. 4, 2006--SunOpta Inc. (SunOpta or the Company) (Nasdaq:STKL)(TSX:SOY). SunOpta announced today Opta Minerals Inc. ("Opta") (TSX:OPM)(TSX:OPM.WT), its 70.6% owned subsidiary, has acquired 100% of the outstanding common shares of Bimac Corporation ("Bimac") of Milan, Michigan. For fiscal 2005 Bimac recorded revenues of approximately US $7.5 million selling its proprietary Tundish and ladle insulators, fluxes and conditioners. These products are use to prevent heat loss, reduce oxidization, and remove impurities in hot metal prior to casting. Each product is produced to the specific requirements of customers that Bimac services within both the Canadian and United States steel industries.
Bimac operates its main production facility in Milan, Michigan. This profitable company employs approximately 30 people, and is a leader in new product development within its industry. Bimac maintains a very high level of customer specific technical service with a broad customer base that includes customers with both integrated and mini mill steel operations. The addition of Bimac further increases Opta's position in the industrial minerals business and further expands its current position as a key service provider to the steel industry.
David Kruse, President and CEO of Opta Minerals Inc. commented "This transaction makes strategic sense for Opta Minerals. The products are complimentary to those currently sold through our facilities in Walkerton Indiana, Brantford Ontario and Lachine Quebec and Bimac enables us to further expand our product offering to our key steel industry customers, while continuing to provide unparalleled customer service".
The purchase price was a combination of cash and contingent payments based on future profits. The acquisition is expected to be immediately accretive to Opta Minerals earnings.
About SunOpta Inc.
SunOpta Inc. is an operator of high-growth ethical businesses, focusing on integrated business models in the natural and organic food markets. The Company has three business units: the SunOpta Food Group, which specializes in sourcing, processing and distribution of natural and organic food products integrated from seed through packaged products; the Opta Minerals Group, a producer, distributor, and recycler of environmentally friendly industrial materials; and the SunOpta BioProcess Group which engineers and markets proprietary steam explosion technology systems for the pulp, bio-fuel and food processing industries. Each of these business units has proprietary products and services that give it a solid competitive advantage in its sector.
Forward-Looking Statements
Certain statements included in this press release may constitute "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to references to business strategies, competitive strengths, goals, capital expenditure plans, business and operational growth plans and references to the future growth of the business. These forward looking statements are based on certain assumptions and analyses made by the Company in light of its experience and its interpretation of current conditions, historical trends and expected future developments as well as other factors that the Company believes are appropriate in the circumstance. However, whether actual results and developments will agree with expectations and predications of the Company is subject to many risks and uncertainties including, but not limited to; general economic, business or market risk conditions; competitive actions by other companies; changes in laws or regulations or policies of local governments, provinces and states as well as the governments of United States and Canada, many of which are beyond the control of the Company. Consequently all forward-looking statements made herein are qualified by these cautionary statements and there can be no assurance that the actual results or developments anticipated by the Company will be realized.
CONTACT: SunOpta Inc.
Jeremy N. Kendall, Steve Bromley, John Dietrich,
or Susan Wiekenkamp, 905-455-2528, ext 103
susan.wiekenkamp@sunopta.com
Website: www.sunopta.com
OR
Investment Community Inquiries
Lytham Partners, LLC
Joe Diaz, Robert Blum, Joe Dorame, 602-889-9700
diaz@lythampartners.com
SOURCE: SunOpta Inc.