Business
SunOpta Completes Acquisitions of Congeladora del Rio and Global Trading
SunOpta Completes Acquisitions of Congeladora del Rio and Global Trading.
About this update from Sunopta Inc.
[{"type":"text","content":"\n\n\n\nTORONTO, ONTARIO, May 15 /CNW/ - SunOpta Inc. (SunOpta or the Company)\n(Nasdaq:STKL) (TSX:SOY) today announced that it has completed the acquisitions\nof the net operating assets of Congeladora del Rio, S.A. de C.V. ("Del Rio"),\nand all of the outstanding shares of Global Trading Inc., ("Global"). The\npurchase prices consisted of cash paid on closing and notes payable.\n\n\nDel Rio operates a fruit processing facility in Irapuato, Mexico. The\nhigh quality facility processes strawberries, peaches, mangos, bananas,\npineapples, honeydew melons and other fruits, into individually-quick frozen,\nblock frozen and purees for the food service, industrial and retail markets.\nUnder the terms of the agreement, SunOpta purchased all of the net operating\nassets, including working capital, equipment, land and buildings in Irapuato.\n\n\nGlobal, the U.S.-based marketing agent for Del Rio located in Greenville,\nSouth Carolina, markets 100% of the fruits processed at Del Rio. Global's\noffices include executive management, sales, customer service and accounting\nsupport.\n\n\nThe combined Del Rio and Global operations have annualized revenues of\napproximately $11 million. The Company plans to expand Del Rio's capacity and\noperations in the short term, consistent with its global supply chain\nexpansion strategy.\n\n\nThe acquisitions of Del Rio and Global are highly synergistic to the\nSunOpta Fruit Group. In addition to complementing the Group's strawberry\nsupply chain, the transactions further vertically integrate the Group's fruit\nsupply chain and expand its core production capabilities. The Group will\ncontinue to purchase millions of pounds of various fruits from global\nprocessors to supply its private label retail, food service and industrial\ncustomers.\n\n\nSergio Varela, President of the SunOpta Fruit Group commented, "The\nacquisitions of Del Rio and Global Trading further enhance our ability to meet\ncustomer demand while maintaining control over the supply chain. These\ntransactions reflect the execution of our global expansion strategy, which\nbenefit our customers in ensuring consistent supply and quality, and a cost\nefficient supply chain."\n\n\nSteve Bromley, President and Chief Executive Officer of SunOpta Inc.\ncommented, "The acquisition of Del Rio and Global, in hand wit...