Hot Features
Premium
Register for real-time alerts, custom portfolio, and market movers
Indeed they are.
SunOpta Inc. (Nasdaq:STKL) (TSX:SOY), a global company focused on organic and healthy foods today announced it has signed a definitive agreement to acquire Citrusource, LLC.. The acquisition transaction closed contemporaneously with the execution of the definitive agreement.
Citrusource is a leading supplier of premium not-from-concentrate private label organic and conventional orange juice and citrus products in the United States with revenues of approximately $30 million. They operate a national sourcing and supply operation utilizing a number of processing and packaging partners to serve a variety of well-known retailer customers.
“This acquisition aligns with our core integrated two-touch strategy and leverages our vertically integrated operations as well as our Consumer Products strategy to grow our healthy beverages portfolio,” said Steve Bromley, Chief Executive Officer of SunOpta. “The acquisition of Citrusource will leverage our integrated juice operation located in San Bernardino, CA, which is now operational. In addition, the Citrusource team brings significant market, commercial and operational expertise to SunOpta, which we expect will help us to drive synergies across our current healthy beverages segment and better serve our customers.”
The business was acquired for a combination of cash on closing of $13.3 million, plus future payments based on specific performance targets, and are subject to certain post-closing adjustments. The acquisition was funded from available credit facilities and is expected to be immediately accretive.
“We are very excited to be joining SunOpta as this will allow us to better serve our customers as we leverage SunOpta’s vertically integrated business and international sourcing expertise,” said Bob Aicklen, Managing Partner at Citrusource. “Our product and process expertise will fit nicely with SunOpta’s focus on healthy and organic beverages. As a result, we will be better able to leverage our combined expertise to expand our product capabilities and customer portfolio.”
In addition to juice, SunOpta’s CPG portfolio includes products for retail and foodservice use such as aseptic beverages, fruit snacks, specialty snack bars, roasted grains, individually quick frozen (IQF) fruits and vegetables, and re-sealable pouch products.
