Business
Opta Minerals Acquires Operations in Eastern Europe and Expands Credit Facilities
Opta Minerals Acquires Operations in Eastern Europe and Expands Credit Facilities.
About this update from Sunopta Inc.
[{"type":"text","content":"\n\n\n\nTORONTO, September 4 /CNW/ - SunOpta Inc. (Nasdaq:STKL) (TSX:SOY) today\nannounced that Opta Minerals Inc. ("Opta" or "Opta Minerals") (TSX:OPM) has\nacquired 100% of the outstanding common shares of Newco a.s. ("Newco") of\nKosice, Slovakia and has also refinanced its credit facilities with a new\nlender.\n\n\nNewco is a supplier of proprietary desulphurization and refractory\nproducts with annualized revenues of approximately US $7.4 million. All\nproducts are produced to the specific requirements of the customers that Newco\nservices within the European steel industry. The Company operates from a\nproduction facility in Kosice, Slovakia, employs approximately 22 people and\nmaintains a very high level of customer service.\n\n\nThe acquisition expands Opta's business capabilities into Europe and\ncomplements existing operations which supply a wide range of desulphurization\nproducts in both the United States and Canada from operations in Indiana and\nOntario.\n\n\nThe purchase price was a combination of cash and one million common\nshares of Opta Minerals. The acquisition is expected to be immediately\naccretive to both Opta and SunOpta and will reduce SunOpta's ownership\nposition in Opta Minerals from 70.6% to 66.6%.\n\n\nIn a related matter, Opta Minerals has refinanced its credit facilities,\nadding approximately US $18 million in available financing before the\nacquisition of Newco. The new credit facilities include an operating line of\ncredit in the amount of $12.5 million; a term loan facility in the amount of\n$12.5 million and an acquisition facility in the amount of $20.0 million.\n\n\nSteve Bromley, President and Chief Executive Officer of SunOpta,\ncommented, "These transactions represent a significant step forward in the\nglobal expansion of Opta Minerals. The acquisition of Newco is strategically\nimportant and positions Opta Minerals on a new continent with products and\nservices very similar to those produced and sold in North America. This\nfinancing and acquisition provide Opta with both the resources required to\ngrow plus an excellent strategic platform for growth in Europe in both the\nindustrial minerals and abrasives markets."\n\n\nAbout SunOpta Inc.\n\n\nSunOpta Inc. is an operator of high-growth ethical businesses, focusing\non integrated business models...