TORONTO--(BUSINESS WIRE)--
SunOpta Inc. (Nasdaq:STKL) (TSX:SOY), a leading global company focused
on organic, non-genetically modified and specialty foods, announced
today that it has signed a definitive agreement to sell equipment used
in the production of flexible, re-sealable pouches from its Allentown,
PA facility to Skjodt-Barrett for $2.0 million. The asset sale is in
conjunction with the Company's decision to discontinue flexible,
re-sealable pouch products as part of its ongoing portfolio optimization
strategy and Value Creation Plan.
"This asset sale, and discontinuation of the flexible re-sealable pouch
business aligns with our stated portfolio optimization strategy of
exiting product lines where the Company is not effectively positioned,"
said Dave Colo, CEO of SunOpta. "We anticipate the discontinuation of
contract manufacturing pouched baby food products to be profit neutral
and allow for the redeployment of capital and resources for investment
in more profitable segments of our business where we have enhanced
strategic positioning."
Flexible re-sealable pouch products accounted for $46 million of
revenues in fiscal 2016, and $10 million of revenues in the first
quarter of 2017, and were part of the healthy snacks platform within the
consumer products segment. SunOpta will continue to produce aseptic
beverages from its Allentown, PA facility, which were not part of the
sale. The sale of equipment is expected to close during the fourth
quarter of 2017.
"I want to thank all of our employees involved in the flexible
re-sealable pouch operations for their hard work and dedication," Colo
said. "Each employee has contributed to our goal of bringing well-being
to life in their own way and has had a meaningful impact at SunOpta."
About SunOpta Inc.
SunOpta Inc. is a leading global company focused on organic,
non-genetically modified ("non-GMO") and specialty foods. SunOpta
specializes in the sourcing, processing and packaging of organic and
non-GMO food products, integrated from seed through packaged products;
with a focus on strategic vertically integrated business models.
SunOpta's organic and non-GMO food operations revolve around value-added
grain, seed, fruit and vegetable based product offerings, supported by a
global sourcing and supply infrastructure.
Forward-Looking Statements
Certain statements included in this press release may be considered
"forward-looking statements" within the meaning of the United States
Private Securities Litigation Reform Act of 1995 and applicable Canadian
securities legislation, which are based on information available to us
on the date of this release. These forward-looking statements include,
but are not limited to, the anticipated impact of our exit from flexible
re-sealable pouch products on profits, the expected time to close the
sale of equipment, and anticipated benefits from the sale of the pouch
equipment. Terms and phrases such as "expect", "anticipate", "will",
"continue", and other similar terms and phrases are intended to identify
these forward-looking statements. Forward looking statements are based
on information available to us on the date of this release and are based
on estimates and assumptions made by the Company in light of its
experience and its perception of historical trends, current conditions
and expected future developments as well as other factors the Company
believes are appropriate in the circumstances including the relatively
modest contribution from flexible re-sealable pouch products to our
consolidated revenues and profits historically. The Company makes no
representation that reasonable business people in possession of the same
information would reach the same conclusions. Whether actual timing and
results will agree with expectations and predications of the Company is
subject to many risks and uncertainties including that all conditions of
closing the sale of the pouch equipment are satisfied, the inability or
failure of the purchaser to satisfy the purchase price for the pouch
equipment, changes in the level of capital investment and various other
risks and uncertainties as described from time to time under "Risk
Factors" in the Company's Annual Report on Form 10-K and its Quarterly
Reports on Form 10-Q (available at www.sec.gov).
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.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170727005361/en/
For SunOpta Inc.
Scott Van Winkle, 617-956-6736
ICR
scott.vanwinkle@icrinc.com
Source: SunOpta Inc.
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