TORONTO--(BUSINESS WIRE)--SunOpta Inc. (Nasdaq:STKL) (TSX:SOY), a leading global company focused on organic, non-genetically modified and specialty foods, announced today that it is making a significant investment in its roasted snacks operations at its facility in Crookston, MN. In conjunction with the investment, customers and capabilities from its Wahpeton, ND roasting facility will be consolidated into the Crookston location, and operations at the Wahpeton location are anticipated to cease during the second fiscal quarter of 2018. These investments further the Company’s ongoing commitment to produce food products of the highest quality and safety for its customers and are expected to provide significant operational efficiencies as part of the Company’s ongoing portfolio optimization strategy and Value Creation Plan.
“The investment in our roasted snacking capabilities reflects our continued efforts to optimize our portfolio and focus on product lines where the Company is effectively positioned to generate long-term profitable returns,” said Dave Colo, CEO of SunOpta. “The investment in the Crookston facility will expand our capabilities and allow us to capitalize on the strong underlying consumer trends in healthy snacking and further advance our quality and food safety initiatives.”
The Company expects to incur expenses relating to the Wahpeton facility closure of approximately $2.0 million to $2.5 million related to asset impairment charges and severance costs of which less than $1.0 million is expected to be cash. These charges are expected to be recognized during the fourth quarter of fiscal 2017.
“I want to thank all of our employees associated with our Wahpeton, ND facility for their hard work and dedication,” Colo said. “Each employee has been instrumental in assisting SunOpta in delivering quality products to our roasted snacks customers.”
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, the expected operational efficiencies from the investment in the roasted snacks operations, the expected impact and the anticipated timing to complete the exit from operations in Wahpeton, ND and consolidate operations into Crookston, MN. Terms and phrases such as "expect", "anticipate", "will", "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 as 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.
