ROUGEMONT, QC, Oct. 18 /CNW Telbec/ - A. Lassonde Inc. and parent company Lassonde Industries Inc. (LAS.A-TSX), a fruit juice and fruit drink manufacturer with its head office in Rougemont, Quebec, announce that A. Lassonde Inc. has concluded an agreement to acquire assets related to the manufacture and marketing of ready-to-drink fruit juices and fruit drinks of McCain Foods (Canada), a division of McCain Foods Limited, for approximately $13.9 million. Lassonde is also to acquire certain inventories the value of which remains to be determined. Among the acquired assets are a juice plant in Calgary, Alberta; production equipment to be transferred from Toronto, Ontario and from Grand Falls, New Brunswick; and trademarks, as well as licensed use of the McCain trademark for periods of up to three years.
A. Lassonde Inc. and Lassonde Industries Inc. will finance the acquisition by increasing existing credit facilities with their lenders. Closing is scheduled for November 2, 2007.
McCain Foods (Canada), a division of McCain Foods Limited, is a privately owned company with more than 25 years of experience in manufacturing and marketing ready-to-drink fruit juices and drinks under trademarks that include best-known Junior Juice, Old South, and Zwak. McCain Foods (Canada) has net sales related to manufacturing and marketing ready-to-drink fruit juices and fruit drinks in the vicinity of $33 million. The company has about 50 employees in this sector at its Calgary plant.
As Jean Gattuso, President and Chief Executive Officer of A. Lassonde Inc. pointed out, "This acquisition should enable A. Lassonde Inc. to consolidate its presence in the Canadian fruit juice and fruit drink industry, especially in the retail sales and food service sectors in western Canada, strengthening the national positioning of A. Lassonde Inc. while adding to a trademark portfolio that already includes prestigious brands such as Rougemont, Oasis, Fruite, Allen's,(1) Everfresh, and Fairlee." The new entity will be called Lassonde Western Canada and will become a division of A. Lassonde Inc.
1- Trademark for which Lassonde Industries Inc. is a licensed user.
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