SunOpta Completes Acquisitions of Congeladora del Rio and Global Trading
TORONTO, Ontario--May 15, 2007--SunOpta Inc. (SunOpta or the Company) (Nasdaq:STKL) (TSX:SOY) today announced that it has completed the acquisitions of the net operating assets of Congeladora del Rio, S.A. de C.V. ("Del Rio"), and all of the outstanding shares of Global Trading Inc., ("Global"). The purchase prices consisted of cash paid on closing and notes payable.
Del Rio operates a fruit processing facility in Irapuato, Mexico. The high quality facility processes strawberries, peaches, mangos, bananas, pineapples, honeydew melons and other fruits, into individually-quick frozen, block frozen and purees for the food service, industrial and retail markets. Under the terms of the agreement, SunOpta purchased all of the net operating assets, including working capital, equipment, land and buildings in Irapuato.
Global, the U.S.-based marketing agent for Del Rio located in Greenville, South Carolina, markets 100% of the fruits processed at Del Rio. Global's offices include executive management, sales, customer service and accounting support.
The combined Del Rio and Global operations have annualized revenues of approximately $11 million. The Company plans to expand Del Rio's capacity and operations in the short term, consistent with its global supply chain expansion strategy.
The acquisitions of Del Rio and Global are highly synergistic to the SunOpta Fruit Group. In addition to complementing the Group's strawberry supply chain, the transactions further vertically integrate the Group's fruit supply chain and expand its core production capabilities. The Group will continue to purchase millions of pounds of various fruits from global processors to supply its private label retail, food service and industrial customers.
Sergio Varela, President of the SunOpta Fruit Group commented, "The acquisitions of Del Rio and Global Trading further enhance our ability to meet customer demand while maintaining control over the supply chain. These transactions reflect the execution of our global expansion strategy, which benefit our customers in ensuring consistent supply and quality, and a cost efficient supply chain."
Steve Bromley, President and Chief Executive Officer of SunOpta Inc. commented, "The acquisition of Del Rio and Global, in hand with our recent expansion announcements in Chile, Argentina and Mexico, reflect the execution of our global sourcing and supply strategy. We are extremely pleased with the 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
susan.wiekenkamp@sunopta.com
www.sunopta.com
or
Investment Community Inquiries:
Lytham Partners, LLC
Joe Diaz, Robert Blum or Joe Dorame
602-889-9700
diaz@lythampartners.com
SOURCE: SunOpta Inc.