TORONTO--(BUSINESS WIRE)--Apr. 2, 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 it has signed a definitive agreement to
acquire the shares of Sanmark B.V. (“Sanmark”). The acquisition closed
contemporaneously with the execution of the definitive agreement.
Sanmark is a growing sourcing and trading business focused on organic
oils for the food, pharmacy, and cosmetic industries. Sanmark sources
raw materials globally and generates most of its sales into the European
and Asia-Pacific markets.
"The acquisition of Sanmark is expected to further diversify our global
oils desk and provide broader access to high-end specialty markets,”
said Gerard Versteegh, Senior Vice President, Global Ingredients and
President of Tradin Organic Agriculture (“Tradin”), a wholly owned
subsidiary of SunOpta. “Through this acquisition we are adding seasoned
commercial traders to our team who will be able to leverage Tradin’s
global reach in organic oils today, while also expanding our ability to
source organic raw materials."
Sanmark is expected to generate approximately €10 million in revenue in
2019, and all of Sanmark’s key employees are expected to join Tradin.
Mark Bolier, President of Sanmark, will assume leadership over Tradin’s
global organic oils desk, including the recently announced addition of
organic avocado oil sourced from a new Ethiopian facility expected to
open in the second half of 2019. The transaction is valued at €3.0
million on a debt-free basis, and was financed through existing credit
facilities.
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, our expectation of the estimated additional
revenue to be generated as a result of the acquisition, and our
expectation that the acquisition will diversify our oils business and
provide greater end market access and greater ability to source raw
materials. Terms and phrases such as "expected", “will”, “believe”,
“should”, “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. 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 failure to retain
key management and employees of Sanmark; issues or delays in the
successful integration of Sanmark’s operations with those of the Company
including incurring or experiencing unanticipated costs and/or delays or
difficulties, future levels of revenues being lower than expected and
costs being higher than expected; conditions affecting the global
organic oil industry generally; local and global political and economic
conditions; 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.
Source: SunOpta Inc.
View source version on businesswire.com: https://www.businesswire.com/news/home/20190402005225/en/
Source: SunOpta Inc.
Scott Van Winkle
ICR
617-956-6736
scott.vanwinkle@icrinc.com