SunOpta Completes Divestiture of Canadian Food Distribution Assets
The Company expects to realize a net gain on the sale of the Canadian food distribution assets with the amount being dependent on finalization of the closing balance sheet and related closing costs.
15 Jun 2010 --- SunOpta Inc. announced that it has completed the previously announced divestiture of the Company's Canadian Food Distribution Assets to United Natural Foods, Inc. (UNFI) and UNFI Canada, Inc., a wholly owned subsidiary of UNFI for cash consideration of approximately CDN $68 million.
The Food Distribution Assets included in this transaction formed part of the SunOpta Distribution Group ("SDG"). SunOpta has retained the natural health products distribution and manufacturing assets which represent the balance of the assets in SDG. All active employees directly involved in the Canadian food distribution operations were offered employment with UNFI, the leading distributor of natural, organic and specialty foods in the United States.
For fiscal 2009, SDG realized revenues of U.S. $237.3 million. The Canadian food distribution operations generated revenues for that period of U.S. $169.6 million and positive operating earnings while the natural health products operations generated the balance of the revenues for the period of U.S. $67.7 million, realizing negative operating earnings due in most part to additional costs in the year related to the relaunch of a number of natural health products brands. The Company expects to realize a net gain on the sale of the Canadian food distribution assets with the amount being dependent on finalization of the closing balance sheet and related closing costs.
'"We are very happy to have closed this acquisition as it represents the latest step in our strategy to grow our business in the Canadian market and we look forward to working closely with our new UNFI Canada associates," commented Steve Spinner, President and Chief Executive Officer of UNFI.
Steve Bromley, President and Chief Executive Officer of SunOpta, commented, "Completing this divestiture is an important step in our strategy to focus on our core food manufacturing platform, strengthening our balance sheet and positioning the Company for the future. We are very proud of the attractive platform that has been put in place and are pleased that UNFI, a company that we have long admired, will be building on this platform. Once again we want to express our sincere appreciation to our dedicated employees for their years of hard work and dedication and wish them continued success under UNFI's leadership."
