SunOpta Inc. (NasdaqGS: STKL; SOY.TO) announced that SunOpta Global Organic Ingredients (SGOI), a division of the SunOpta Fruit Group, has acquired a number of existing supplier and customer relationships,
and the rights to the Pure Nature Organics(tm) frozen fruit and
vegetable registered trademark.
The deal will expand its global organic supply capabilities, primarily in Central America, as well as expand its supply of private label and branded frozen food products to its growing customer base.
It is estimated that this business will generate incremental profitable revenues of approximately $5.0 million to $7.0 million in the first year and continue to grow in following years as the products are further developed and incremental supply becomes available.
As per the terms of the agreements, SGOI has entered into arrangements with a number of strategic organic suppliers and processors, primarily in Central America, a relatively new but fast developing and growing area for the group, as well as relationships in other key growing regions, to develop supply sources for organic broccoli, green beans, edamame, asparagus and other vegetables and fruits. In addition, SGOI has assumed a number of existing customer contracts and relationships in North America for supply of organic private label and branded frozen vegetable products and expects to grow these relationships as supply and processing sources are expanded.
Steve Bromley, President and Chief Executive Officer of SunOpta Inc., commented, "This transaction further expands SunOpta’s global organic supply capabilities and also expands the Company’s supply of branded and private label organic food products, both of which are key to our continued strategic growth plans."
About SunOpta Inc.
SunOpta Inc. is an operator of high-growth ethical businesses, focusing on integrated business models in the natural and organic food and natural health 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; Opta Minerals Inc. (Toronto:OPM.TO) (66.6% owned by SunOpta), a producer, distributor, and recycler of environmentally friendly industrial materials; and SunOpta BioProcess Inc. which engineers and markets proprietary steam explosion technology systems for the bio-fuel, pulp and food processing industries. Each of these business units has proprietary products and services that give it a solid competitive advantage in its sector.
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