SunOpta Divests of Mexican Frozen Fruit Assets and Enters Into Strategic Supply Agreement
This divestiture is the latest step in our strategy to improve the profitability of our frozen fruit operations and continue to simplify our business model with a focus on our core areas of expertise, plus expand strategic relationships to secure long-term supply.
5/3/2011 --- SunOpta Inc., a leading global company focused on natural, organic and specialty foods, announced the sale of its frozen fruit processing assets in Rosarito, Mexico and Irapuato, Mexico to Fruvemex Mexicali, S.A. de C.V.. As part of this transaction SunOpta also entered into a strategic raw material supply agreement with Fruvemex, plus a market value lease for Fruvemex's use of the land and buildings in Irapuato which remain the property of SunOpta.
The purchase price was $3.15 million. An initial installment of $750,000 was received on the closing of the transaction and the balance will be paid via a series of installments over the next year.
Fruvemex is a privately owned Mexican entity headquartered in Mexicali, Mexico. The business has deep roots in frozen, refrigerated and dehydrated fruit and vegetable products including strawberries, mango, melons, hot peppers, bell peppers, tomatoes, onions and salsas and has been a supplier to SunOpta for several years.
The processing assets included in this transaction form part of the SunOpta Fruit Group, and more specifically, the SunOpta Fruit Specialties frozen fruit operations, which supply frozen strawberries and other fruit products in Individually Quick Frozen and other packaging formats to retail, foodservice and industrial customers in the United States and certain international markets. As part of this transaction SunOpta has entered into a supply agreement with Fruvemex who will supply strawberry and other fruit products to SunOpta from these facilities as well as other operations under their control.
Steve Bromley, President and Chief Executive Officer of SunOpta, commented, "This divestiture is the latest step in our strategy to improve the profitability of our frozen fruit operations and continue to simplify our business model with a focus on our core areas of expertise, plus expand strategic relationships to secure long-term supply. We believe that Fruvemex will be an excellent long term partner and provide SunOpta with cost competitive fruit products. We want to express our sincere appreciation to our dedicated employees for their hard work and dedication and wish them continued success under Fruvemex's leadership."
To contact our editorial team please email us at editorial@cnsmedia.com
Subscribe now to receive the latest news directly into your inbox.