Business
Canadian-owned companies Lassonde Industries Inc. and Sun-Rype Products Ltd. to join forces!
Canadian-owned companies Lassonde Industries Inc. and Sun-Rype Products Ltd. to join force...
About this update from Lassonde Industries, Inc. Class A
[{"type":"text","content":"\n\n\n\nCanadian-owned companies Lassonde Industries Inc. and Sun-Rype Products Ltd. to join forces!\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n\n\n\n\n\n\n\nCanada NewsWire\nROUGEMONT, QC, Oct. 29, 2019\n\n\n\n ROUGEMONT, QC, Oct. 29, 2019 /CNW Telbec/ - Lassonde Industries Inc. (TSX: LAS) (\"Lassonde\" or the \"Company\") announced today that two of its subsidiaries have entered into an agreement with subsidiaries of The Jim Pattison Group (\"JPG\"), to acquire Sun-Rype Products Ltd. (\"Sun-Rype\"), a Canadian fruit-based snack and beverage manufacturer headquartered in Kelowna, British Columbia, and its two US affiliates located in Selah and Wapato, Washington State, for a cash consideration of approximately $80 million, subject to working capital adjustments and other adjustments, payable upon closing of the transaction. The cash consideration reflects excess working capital estimated at $7 million. As part of the transaction, Lassonde will assume $21 million in lease liability related to long-term leases for the facilities located in Kelowna, Selah and Wapato. \nSun-Rype generated sales of approximately $164 million and an adjusted EBITDA of approximately $9 million for the 12-month period ending on September 30th, 2019. The acquisition will be financed by Lassonde's Canadian existing credit facility and is subject to customary conditions including the approval of the Competition Bureau. Closing of the transaction is expected towards the end of 2019. Lassonde's transaction costs are estimated at $1.5 million.\n\"It is with great pride and enthusiasm that we look forward to welcoming Sun-Rype's management team and employees to Lassonde. Sun-Rype and Lassonde are two great Canadian companies with decades of strong presence in the food and beverage industry in North America. This transaction is part of our strategy of constant and measured growth and will strengthen our presence in the Canadian and U.S. markets,\" said Nathalie Lassonde, Chief Executive Officer of Lassonde Industries Inc.\nJim Pattison, Chairman and CEO of The Jim Pattison Group, said, \"Lasson...