TORONTO--(BUSINESS WIRE)--Sep. 27, 2017--
SunOpta Inc. (Nasdaq:STKL) (TSX:SOY), a leading global company focused
on organic, non-genetically modified and specialty foods, announced
today that it intends to exit its nutrition bar product lines and
operations in Carson City, NV. The cessation of operations is part of
the Company’s ongoing portfolio optimization strategy and Value Creation
Plan.
“The planned discontinuation of our nutrition bar operations reflects
our continued efforts to optimize our portfolio to focus on product
lines where the Company is effectively positioned to generate long-term
profitable returns,” said Dave Colo, CEO of SunOpta. “The decision to
cease operations at Carson City is accretive to EBITDA and allows us to
redeploy both our financial and human resources towards more profitable
segments of our business where we have enhanced strategic positioning.”
Nutrition bars accounted for $13 million of SunOpta’s revenue in fiscal
2016, and $11 million of revenue during the first half of 2017, and were
reported as part of the healthy snacks platform within the consumer
products segment. The discontinuation of the bar product lines is
expected to be positive to EBITDA in future periods. The Company expects
to incur charges of approximately $8.0 million to $9.5 million relating
to the facility closure, including approximately $5.0 million to $6.0
million of non-cash charges for asset write-downs, and approximately
$3.0 million to $3.5 million of cash expenditures for severance and
other facility closure costs. The cash charges are expected to be
largely offset by the recovery of working capital after the full
wind-down of operations. The non-cash and cash charges are expected to
be recognized during the third and fourth quarters of fiscal 2017. The
Company is working with its nutrition bar customers to expedite the exit
from these operations and is targeting completion by the end of fiscal
2017.
“I want to thank all of our employees associated with our Carson City
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
nutrition bar products on earnings, EBITDA, cash flow, and the expected
timing to complete the exit from operations in Carson City, NV. 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 contribution of
nutritional bars to 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
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.
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Source: SunOpta Inc.
SunOpta Inc.
Scott Van Winkle, 617-956-6736
ICR
scott.vanwinkle@icrinc.com