SunOpta Inc. Announces That Opta Minerals Inc. has Acquired the Shares of Magnesium Technologies Corporation
TORONTO--Feb. 15, 2006--SunOpta Inc. (NASDAQ:STKL)(TSX:SOY) announced today that Opta Minerals Inc. ("Opta") (TSX:OPM)(TSX:OPM.WT), which is 70.6% owned by SunOpta, has acquired 100% of the outstanding common shares of Magnesium Technologies Corporation ("MagTech") of Richfield, Ohio. For fiscal 2005 MagTech recorded revenues of approximately US $29 million selling its proprietary and patented desulphurization systems and products, which are produced to the specific requirements of each customer that it services within both the Canadian and United States steel industries.
MagTech operates its main production facility in Walkerton, Indiana and maintains a sales and head office in Richfield, Ohio. This profitable company employs approximately 70 people, and is a leader in new product development within its industry. MagTech maintains a very high level of customer specific technical service with its primary customers, through the use of onsite technicians who monitor and manage the use of its products in the desulphurization process. The addition of MagTech substantially 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. It will enable us to expand and pursue additional growth opportunities and furthers our commitment to unparalleled customer service."
MagTech's primary market is within North America, however opportunities exist to expand internationally. As part of the transaction, Opta has secured an option to acquire a control position in a sister company employing MagTech technology in Europe, with approximately US $8 million in revenue.
The purchase price was a combination of cash and long term notes. The acquisition is expected to be immediately accretive to both Opta Minerals and SunOpta's 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. For the last seven consecutive years, SunOpta was included in Profit magazine's 'Profit 100' list of the 100 fastest growing companies in Canada. 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
email: susan.wiekenkamp@sunopta.com
website: www.sunopta.com
OR
Investment Community Inquiries:
Lytham Partners, LLC
Joe Diaz, Robert Blum or Joe Dorame, 602-889-9700
email: diaz@lythampartners.com
SOURCE: SunOpta Inc.