Lassonde Industries, a Canada-based food and drinks business, is to acquire local peer Sun-Rype Products for around CAD80m (US$61.1m).
Rougemont, Quebec-based Lassonde said two of its subsidiaries had entered into an agreement with subsidiaries of The Jim Pattison Group to acquire Sun-Rype, a fruit-based snack and beverage manufacturer located in Kelowna, British Columbia, and its two US affiliates in Selah and Wapato, Washington State.
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Nathalie Lassonde, CEO of Lassonde Industries, which manufactures products such as Canton fondue sauces and Sunbites corn-on-the cob, as well as cranberry sauces, said: “Sun-Rype and Lassonde are two great Canadian companies with decades of strong presence in the food and beverage industry in North America. This transaction is part of our strategy of constant and measured growth and will strengthen our presence in the Canadian and US markets.”
Jim Pattison, chairman and CEO of The Jim Pattison Group, added: “Lassonde is a very well respected and established Canadian company, which has been in business for over 100 years. It has been a key supplier to several of our companies, including Save-On-Foods and Buy-Low Foods for decades, and will continue to be. Lassonde is a first-class growing company with an excellent track record. Sun-Rype is in good hands with Lassonde.”
Sun-Rype, founded in 1946, generated sales of approximately CAD164m in the 12 months to 30 September. It employs around 400 people.
Lassonde employs 2,200 people across 15 plants in Canada and the US.
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By GlobalDataThe purchase price reflects excess working capital estimated at CAD7m. As part of the transaction, Lassonde will assume CAD21m in lease liabilities related to long-term leases for Sun-Rype’s three facilities.
The transaction is expected to close towards the end of 2019.
