Business
SunOpta Completes Acquisition of Hess Food Group LLC
SunOpta Completes Acquisition of Hess Food Group LLC.
About this update from Sunopta Inc.
[{"type":"text","content":"\n\n\n\n\nTORONTO, November 7 /CNW/ - SunOpta Inc. (SunOpta or the Company)\n(NASDAQ:STKL) (TSX:SOY) today announced that it has completed the acquisition\nof all of the outstanding shares of Hess Food Group LLC (\"Hess\"), of Chicago,\nIllinois. The purchase price includes cash and contingent future payments.\n\nHess is a privately-owned and profitable supplier of fruits and\nvegetables with revenues of approximately $4 million, focused primarily on the\nquick-service and casual restaurant industry. Hess's business model focuses on\nproviding its customers with supply chain expertise, from initial product\ndevelopment, to sourcing experience, expertise and flexibility, and inventory\nmanagement. Hess manages over fifty million pounds of raw and processed fruits\nand vegetables for its customers, sourced from qualified processors, including\nSunOpta's processing facilities. Products are sourced according to customer's\nhigh quality specifications and precise formulations.\n\nThe combination of Hess and the SunOpta Fruit Group will further\nstrengthen SunOpta's position as a leader in the quick-service and casual\nrestaurant industry which complements SunOpta's strengths in the private label\nretail and industrial markets. In addition, SunOpta's global supply sourcing\ncapabilities are expected to generate significant benefits to Hess's customers\nvia year-round global supply risk management, consistency of supply and cost\nefficiencies. The combination of Hess's product development experience and\nSunOpta's research and development expertise is also anticipated to generate\nsignificant future opportunities as customers benefit from greater resources\nin product development and innovation.\n\nHess will continue to operate independently and maintain its long\nstanding commitment to its customers' best interests, although it will now be\nsupported by all of the resources of SunOpta.\n\nMarcy Hess, President of Hess Food Group LLC commented that, \"we're\nextremely excited to have entered into this strategic partnership with\nSunOpta. Our combined capabilities will enable us to expand the service we\nprovide to our customers and strengthen our supply chain offerings in this\nmarket as our customers move towards healthier menu offerings.\"\n\nSergio Varela, President of the SunOpta Fruit Group stated, \"we have\nworked with the Hess ...