SunOpta Expands Capabilities in Healthy Convenience Foods Category

Edner's existing operational capabilities will also enable SunOpta to extend the breadth of its fruit based product offerings via the introduction of innovative new products utilizing the capabilities that exist within this facility.

7 Dec 2010 --- SunOpta Inc. announced that its indirect wholly-owned subsidiary SunOpta Fruit Group Inc. has signed definitive agreements to acquire 100% of the assets and business of Edner of Nevada, Inc., for cash consideration of $4 million, on a debt free basis, subject to post closing working capital adjustments, plus a potential earn-out dependent on the achievement of certain future targets. Edner is a profitable business that will be accretive to SunOpta. The transaction is expected to close in the next several weeks upon the completion of customary closing conditions.

Edner was founded in 2003 by Ed and Vicky Kirschner and produces a wide variety of nutritious portable foods such as nutrition bars and grains and fruit based snack bars serving the fast growing wholesome and convenient healthy snacks category from its 104,000 square foot facility, located in Carson City, Nevada. Edner co-packs for a variety of branded and private label customers and current revenues are approximately $10 million, with equipment and capacity available to support an increase of revenues to approximately $50 million without significant capital investment. Edner's existing operational capabilities will also enable SunOpta to extend the breadth of its fruit based product offerings via the introduction of innovative new products utilizing the capabilities that exist within this facility.

Ed Kirschner, President and owner, commented, "We are pleased to enter into this transaction with SunOpta and to remain engaged with the business, leveraging our joint capabilities. We believe SunOpta provides an excellent platform and fit with Edner's common values and commitment to product innovation and customer service. Vicky and I want to express our sincere appreciation to our dedicated employees for their hard work and commitment and we look forward to working with them as part of the SunOpta family."

Chris Bouchard, President of the SunOpta Healthy Fruit Snacks operations which form part of SunOpta Fruit Group, commented, "We are very pleased to have completed this transaction with Ed and Vicky. Edner is well respected for the innovative products they produce along with their extensive formulation capabilities. We believe we will be able to expand revenues significantly without significant additional capital investment and broaden our product offering with our existing customers. We are delighted that Ed and Vicky will continue in the business for a period of time to support growing and integrating our two businesses."

Steve Bromley, President and Chief Executive Officer of SunOpta Inc., commented, "The combination of our Healthy Fruit Snacks operations and our global sourcing capabilities for healthy ingredients with Edner's business and extensive capabilities will allow us to strengthen our healthy product offering in the rapidly growing healthy convenience foods category.  We are excited about the possibilities for growth once we put our businesses and skill sets together.  This acquisition is consistent with our strategy to grow our core value-added natural and organic foods platform, creating strong market positions in niche categories.  We would like to welcome Ed, Vicky and the Edner team to the SunOpta family."