Business
Lassonde Industries Inc. to acquire U.S. branded juice company Apple & Eve, LLC of Port Washington, New York in a US$150.0 million transaction
Lassonde Industries, one of North America's leading marketers and manufacturers of fru...
About this update from Lassonde Industries, Inc. Class A
[{"type":"text","content":"\n\n\n\nLassonde Industries, one of North America's leading marketers and\n manufacturers of fruit juices and drinks, acquires a national fruit\n juice and drink brand in the United States.\n\n\n\n\nLassonde Industries to enter the branded juice business in the U.S. with\n an established platform for continued growth and new product\n innovation.\n\n\n\n\nThe acquisition will enable Lassonde Industries to strengthen its U.S.\n presence by leveraging synergies within its existing U.S. business.\n\n\n\nROUGEMONT, QC, July 3, 2014 /CNW Telbec/ - Lassonde Industries Inc.\n (TSX: LAS.A) (\"Lassonde\") has entered into a definitive agreement,\n through one of its U.S. subsidiaries, with US Juice Partners, LLC to\n acquire privately owned Apple & Eve, LLC of Port Washington, New York,\n for a total cash consideration of US$150.0 million payable at closing,\n subject to adjustments for working capital and other items.\n\n\nUpon closing of the transaction, expected to occur in July 2014,\n Lassonde will have a 90% equity interest in Apple & Eve and its\n complete line of juice and drink brands distributed widely across the\n United States. Through their existing equity interest in the acquiring\n U.S. subsidiary and a capital contribution to the acquisition\n financing, members of the Lassonde family will own the remaining 10%\n equity interest.\n\n\n\"Our entry into the branded juice business in the United States\n represents another major milestone in our North American strategy,\"\n said Pierre-Paul Lassonde, Chairman of the Board and Chief Executive\n Officer of Lassonde Industries Inc. \"It is aligned with our strategy of\n consistent, measured growth and enhances our overall position in the\n industry by providing an excellent platform for the future.\"\n\n\nFinancial Terms\n\n\nThe acquisition will be financed as follows: US$75.0 million under the\n term credit facility of a Lassonde U.S. subsidiary, US$67.5 million\n from a combination of cash, cash equivalents on hand and Lassonde's\n Canadian operating credit facility, with the remaining US$7.5 million\n provided by equity investment of members of the Lassonde family.\n Financing fees related thereto are estimated at US$2.0 million while\n other fees related to the transaction are estimated at US$3.5 million.\n Closing of the transaction is subj...