SunOpta Completes Acquisition of Certain Assets of Baja California Congelados, S.A. de C.V.
TORONTO--May 4, 2007--SunOpta Inc. (SunOpta or the Company) (Nasdaq:STKL) (TSX:SOY) today announced that it has completed the acquisition of certain assets of Baja California Congelados, S.A. de C.V. ("BCC"), of Rosarito, Baja California, Mexico. The purchase price consisted of cash and was paid on closing.
BCC is the leading frozen strawberry processor in Baja California, Mexico. Under the terms of the agreement, SunOpta purchased all of the physical assets of the production facility located in Rosarito and also assumed a long-term lease for the facility, located 20 miles south of San Diego, California. In addition, SunOpta entered into five year supply agreements with Andrew & Williamson Sales Co., ("Andrew Williamson") the San Diego-based former parent of BCC. The agreements provide for the supply of strawberries from both the Baja California and Oxnard, California growing regions to the Rosarito facility in addition to SunOpta's existing California facilities. As a result, SunOpta expects to add in excess of 20 million pounds of strawberries to the Company's integrated supply chain by 2008, resulting in annualized revenues of approximately $14 million.
Andrew Williamson has agreed to provide operational and customer service support to assist SunOpta in transitioning the facility under SunOpta management.
Sergio Varela, President of the SunOpta Fruit Group commented, "The incremental capacity and raw material supply is critical to meeting the growth in demand in the natural and organic fruit market. This transaction is highly synergistic with our existing berry operations and will significantly improve our ability to serve fast growing markets."
Steve Bromley, President and Chief Executive Officer of SunOpta Inc. commented, "This transaction is consistent with our strategic plan to expand our global sourcing and production capabilities in order to meet customer demand and ensure reliable and quality supply of natural and organic fruit products. We are extremely pleased with this strategic expansion of our international sourcing and processing capabilities."
About SunOpta Inc.
SunOpta Inc. is an operator of high-growth ethical businesses, focusing on integrated business models in the natural and organic food, supplements and health and beauty 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 (soon to become SunOpta BioProcess Inc.) 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, Chairman
Steve Bromley, President & CEO
Joseph Riz, Executive Vice President
John Dietrich, Vice President & CFO
Susan Wiekenkamp, Information Officer
905-455-2528, ext 103
[email protected]
Website: www.sunopta.com
or
Investment Community Inquiries
Lytham Partners, LLC
Joe Diaz, Robert Blum, Joe Dorame, 602-889-9700
[email protected]
SOURCE: SunOpta Inc.