TORONTO--(BUSINESS WIRE)--Feb. 25, 2019--
SunOpta Inc. (“SunOpta” or the “Company”) (Nasdaq:STKL) (TSX:SOY), a
leading global company focused on organic, non-genetically modified and
specialty foods, today announced the sale of its specialty and organic
soy and corn business to Pipeline Foods, LLC (“Pipeline Foods”) for
$66.5 million, subject to certain post-closing adjustments. The
transaction closed on February 22, 2019.
“Our specialty and organic soy and corn business has a long history of
supplying high quality specialty, non-GMO and organic ingredients to the
food industry,” said John Ruelle, Senior Vice President of Raw Material
Sourcing and Supply at SunOpta. “I want to thank all of our employees
who are transitioning to Pipeline Foods for their hard work and
dedication. Each employee has had a meaningful impact and contributed to
the Company’s Value Creation Plan during their time at SunOpta. We
believe Pipeline Foods is well positioned in this space, which should
serve the industry well and be positive for our transitioning employees.”
“We are excited by this incredible opportunity to grow our business and
expand the accessibility of organic and specialty grains in the US,”
said Eric Jackson, chief executive of Pipeline Foods. “With this move,
we are merging the newest team in the sustainable agriculture supply
chain business with the most tenured and respected team in the business,
and creating something even better. With a focused passion, we seek to
merge the best parts of each organization’s culture, practices,
experience, and relationships to build a world-class business that can
deliver value to our farmer-partners as well as our customers.”
SunOpta's specialty and organic soy and corn business formed part of its
North American-based raw material sourcing and supply segment and
includes five facilities located in Hope, MN, Blooming Prairie, MN,
Ellendale, MN, Moorhead, MN and Cresco, IA. As part of the deal, SunOptaand Pipeline Foods have entered into a multi-year supply agreement for
certain ingredients used in SunOpta’s consumer products business.
SunOpta will continue to operate its other North American-based sourcing
and supply operations, consisting of sunflower and roasting operations,
as well as its European-based international sourcing and supply
platform, known as Tradin Organic, which were not part of the sale.
Additional details regarding the expected pro forma financial impact
from the sale, along with expanded commentary on this development will
be provided on SunOpta’s previously announced Fourth Quarter 2018
Financial Results Release and Conference Call scheduled for February 26,
2019.
Advisors
Raymond James & Associates, Inc. is serving as financial advisor and
Faegre Baker Daniels LLP is serving as legal advisor to SunOpta.
Crowe LLP is serving as accounting and tax advisor and Saul Ewing
Arnstein & Lehr is serving as legal advisor to Pipeline Foods.
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.
About Pipeline Foods
With headquarters in Minneapolis, Minn., Pipeline
Foods is accelerating the availability and reliability of non-GMO,
organic and regeneratively grown food. We bring transparent, sustainable
supply chain solutions to connect the dots for our farming partners and
end users of organic grains and ingredients. Find us at https://www.pipelinefoods.com/,
on Twitter @PipelineFoods
and Facebookwww.facebook.com/pipelinefoods/.
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, our belief that Pipeline Foods is well
positioned and should be able to serve the industry well and be positive
for transitioning employees. Terms and phrases such as “believe”,
“should”, “continue”, "expected", "plans", “will” 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. 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 the availability and
attractiveness of potential strategic investments for the Company,
delays or other potential issues in transitioning employees to Pipeline
Foods as well as other risks 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: https://www.businesswire.com/news/home/20190225005277/en/
Source: SunOpta Inc.
Scott Van Winkle
ICR
617-956-6736
scott.vanwinkle@icrinc.com