SunOpta Expands Organic Oils Portfolio with Acquisition of Sanmark B.V.
02 April 2019 - 10:30PM
Business Wire
SunOpta Inc. (“SunOpta” or the “Company”) (Nasdaq:STKL)
(TSX:SOY), a leading global company focused on organic,
non-genetically modified and specialty foods, today announced it
has signed a definitive agreement to acquire the shares of Sanmark
B.V. (“Sanmark”). The acquisition closed contemporaneously with the
execution of the definitive agreement.
Sanmark is a growing sourcing and trading business focused on
organic oils for the food, pharmacy, and cosmetic industries.
Sanmark sources raw materials globally and generates most of its
sales into the European and Asia-Pacific markets.
"The acquisition of Sanmark is expected to further diversify our
global oils desk and provide broader access to high-end specialty
markets,” said Gerard Versteegh, Senior Vice President, Global
Ingredients and President of Tradin Organic Agriculture (“Tradin”),
a wholly owned subsidiary of SunOpta. “Through this acquisition we
are adding seasoned commercial traders to our team who will be able
to leverage Tradin’s global reach in organic oils today, while also
expanding our ability to source organic raw materials."
Sanmark is expected to generate approximately €10 million in
revenue in 2019, and all of Sanmark’s key employees are expected to
join Tradin. Mark Bolier, President of Sanmark, will assume
leadership over Tradin’s global organic oils desk, including the
recently announced addition of organic avocado oil sourced from a
new Ethiopian facility expected to open in the second half of 2019.
The transaction is valued at €3.0 million on a debt-free basis, and
was financed through existing credit facilities.
About SunOpta Inc.
SunOpta Inc. is a leading global company focused on organic,
non-genetically modified ("non-GMO") and specialty foods. SunOpta
specializes in the sourcing, processing and packaging of organic
and non-GMO food products, integrated from seed through packaged
products; with a focus on strategic vertically integrated business
models. SunOpta's organic and non-GMO food operations revolve
around value-added grain, seed, fruit and vegetable-based product
offerings, supported by a global sourcing and supply
infrastructure.
Forward-Looking Statements
Certain statements included in this press release may be
considered "forward-looking statements" within the meaning of the
United States Private Securities Litigation Reform Act of 1995 and
applicable Canadian securities legislation, which are based on
information available to us on the date of this release. These
forward-looking statements include, but are not limited to, our
expectation of the estimated additional revenue to be generated as
a result of the acquisition, and our expectation that the
acquisition will diversify our oils business and provide greater
end market access and greater ability to source raw materials.
Terms and phrases such as "expected", “will”, “believe”, “should”,
“continue” and other similar terms and phrases are intended to
identify these forward-looking statements. Forward looking
statements are based on information available to us on the date of
this release and are based on estimates and assumptions made by the
Company in light of its experience and its perception of historical
trends, current conditions and expected future developments as well
as other factors the Company believes are appropriate in the
circumstances. The Company makes no representation that reasonable
business people in possession of the same information would reach
the same conclusions. Whether actual timing and results will agree
with expectations and predications of the Company is subject to
many risks and uncertainties including failure to retain key
management and employees of Sanmark; issues or delays in the
successful integration of Sanmark’s operations with those of the
Company including incurring or experiencing unanticipated costs
and/or delays or difficulties, future levels of revenues being
lower than expected and costs being higher than expected;
conditions affecting the global organic oil industry generally;
local and global political and economic conditions; as well as
other risks described from time to time under "Risk Factors" in the
Company's Annual Report on Form 10-K and its Quarterly Reports on
Form 10-Q (available at www.sec.gov). Consequently, all
forward-looking statements made herein are qualified by these
cautionary statements and there can be no assurance that the actual
results or developments anticipated by the Company will be
realized.
Source: SunOpta Inc.
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version on businesswire.com: https://www.businesswire.com/news/home/20190402005225/en/
Scott Van WinkleICR617-956-6736scott.vanwinkle@icrinc.com
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