TORONTO--(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.
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.