TORONTO, November 7 /CNW/ - SunOpta Inc. (SunOpta or the Company)
(NASDAQ:STKL) (TSX:SOY) today announced that it has completed the acquisition
of all of the outstanding shares of Hess Food Group LLC ("Hess"), of Chicago,
Illinois. The purchase price includes cash and contingent future payments.
Hess is a privately-owned and profitable supplier of fruits and
vegetables with revenues of approximately $4 million, focused primarily on the
quick-service and casual restaurant industry. Hess's business model focuses on
providing its customers with supply chain expertise, from initial product
development, to sourcing experience, expertise and flexibility, and inventory
management. Hess manages over fifty million pounds of raw and processed fruits
and vegetables for its customers, sourced from qualified processors, including
SunOpta's processing facilities. Products are sourced according to customer's
high quality specifications and precise formulations.
The combination of Hess and the SunOpta Fruit Group will further
strengthen SunOpta's position as a leader in the quick-service and casual
restaurant industry which complements SunOpta's strengths in the private label
retail and industrial markets. In addition, SunOpta's global supply sourcing
capabilities are expected to generate significant benefits to Hess's customers
via year-round global supply risk management, consistency of supply and cost
efficiencies. The combination of Hess's product development experience and
SunOpta's research and development expertise is also anticipated to generate
significant future opportunities as customers benefit from greater resources
in product development and innovation.
Hess will continue to operate independently and maintain its long
standing commitment to its customers' best interests, although it will now be
supported by all of the resources of SunOpta.
Marcy Hess, President of Hess Food Group LLC commented that, "we're
extremely excited to have entered into this strategic partnership with
SunOpta. Our combined capabilities will enable us to expand the service we
provide to our customers and strengthen our supply chain offerings in this
market as our customers move towards healthier menu offerings."
Sergio Varela, President of the SunOpta Fruit Group stated, "we have
worked with the Hess Food Group for nearly ten years on various projects and
are currently working on a number of major product development projects to
bring exciting and market innovative products to our customers. The
combination of our efforts will strengthen the value proposition to both
SunOpta's and Hess's customers."
About SunOpta Inc.
SunOpta Inc. is an operator of high-growth ethical businesses, focusing
on integrated business models in the natural and organic food markets. The
Company has three business units: the SunOpta Food Group, which specializes in
sourcing, processing and distribution of natural and organic food products
integrated from seed through packaged products; the Opta Minerals Group, a
producer, distributor, and recycler of environmentally friendly industrial
materials; and the SunOpta BioProcess Group which engineers and markets
proprietary steam explosion technology systems for the pulp, bio-fuel and food
processing industries. Each of these business units has proprietary products
and services that give it a solid competitive advantage in its sector.
Forward-Looking Statements
Certain statements included in this press release may constitute
"forward-looking statements" within the meaning of the United States Private
Securities Litigation Reform Act of 1995. These forward-looking statements
include, but are not limited to references to business strategies, competitive
strengths, goals, capital expenditure plans, business and operational growth
plans and references to the future growth of the business. These forward
looking statements are based on certain assumptions and analyses made by the
Company in light of its experience and its interpretation of current
conditions, historical trends and expected future developments as well as
other factors that the Company believes are appropriate in the circumstance.
However, whether actual results and developments will agree with expectations
and predications of the Company is subject to many risks and uncertainties
including, but not limited to; general economic, business or market risk
conditions; competitive actions by other companies; changes in laws or
regulations or policies of local governments, provinces and states as well as
the governments of United States and Canada, many of which are beyond the
control of the Company. Consequently all forward-looking statements made
herein are qualified by these cautionary statements and there can be no
assurance that the actual results or developments anticipated by the Company
will be realized.
