Rougemont, Quebec, January 3, 2020 – Lassonde Industries Inc. (TSX: LAS) (“Lassonde” or the “Company”) has completed the acquisition of Sun-Rype Products Ltd. (“Sun-Rype”) and its two US affiliates from The Jim Pattison Group for a cash consideration of $89.3 million further to the satisfaction of closing conditions, including Competition Bureau clearance. This amount includes $9.3 million in preliminary working capital adjustments and other adjustments. As part of the transaction, Lassonde assumed $21?million in liabilities related to long-term leases for the facilities located in Kelowna (BC), Selah and Wapato (WA).
The acquisition was financed by Lassonde’s existing credit facility. The transaction costs for Lassonde are estimated at $1.5 million.
“We are delighted to welcome Sun-Rype’s employees to the Lassonde team,” commented Nathalie Lassonde, Chief Executive Officer of Lassonde Industries Inc. “Both of our organizations have an excellent reputation in the market and a great tradition of innovation and service quality in fruit juice and food processing. We are pleased to be able to pursue our growth together.”
According to Jean Gattuso, President and Chief Operating Officer, Lassonde Industries Inc., “Completion of Lassonde’s acquisition of Sun-Rype is a major milestone in the growth of our respective companies. This acquisition paves the way for the pooling of talent, expertise and competence of food industry professionals, who share common values and are joining forces to continue to serve our customers’ current and future needs.”
About Sun-Rype Products Ltd.
Sun-Rype Products Ltd. is a Canadian fruit-based snack and beverage manufacturer, which generated sales of approximately $164 million and an adjusted EBITDA of approximately $9 million for the 12-month period ending on September 30th, 2019. Since it was founded in 1946, Sun-Rype has been producing juices and fruit snacks in Kelowna, British Columbia, in the Okanagan Valley. It also operates two other facilities located in Selah and Wapato, Washington, United States.
Sun-Rype manufactures and sells a variety of ready-to-drink fruit-based juices and drinks under the Sun-Rype brand and fruit-based snacks under the Sun-Rype, Fruit?to?Go, FruitSource and Good Bites brands. Its customers include grocery stores, club stores, and mass merchandisers, as well as wholesalers and drug stores.