Canadian-owned companies Lassonde Industries Inc. and Sun-Rype Products Ltd. to join forces! Français
ROUGEMONT, QC, Oct. 29, 2019 /CNW Telbec/ - Lassonde Industries Inc. (TSX: LAS) ("Lassonde" or the "Company") announced today that two of its subsidiaries have entered into an agreement with subsidiaries of The Jim Pattison Group ("JPG"), to acquire Sun-Rype Products Ltd. ("Sun-Rype"), a Canadian fruit-based snack and beverage manufacturer headquartered in Kelowna, British Columbia, and its two US affiliates located in Selah and Wapato, Washington State, for a cash consideration of approximately $80 million, subject to working capital adjustments and other adjustments, payable upon closing of the transaction. The cash consideration reflects excess working capital estimated at $7 million. As part of the transaction, Lassonde will assume $21 million in lease liability related to long-term leases for the facilities located in Kelowna, Selah and Wapato.
Sun-Rype generated sales of approximately $164 million and an adjusted EBITDA of approximately $9 million for the 12-month period ending on September 30th, 2019. The acquisition will be financed by Lassonde's Canadian existing credit facility and is subject to customary conditions including the approval of the Competition Bureau. Closing of the transaction is expected towards the end of 2019. Lassonde's transaction costs are estimated at $1.5 million.
"It is with great pride and enthusiasm that we look forward to welcoming Sun-Rype's management team and employees to Lassonde. 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 U.S. markets," said Nathalie Lassonde, Chief Executive Officer of Lassonde Industries Inc.
Jim Pattison, Chairman and CEO of The Jim Pattison Group, said, "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 is a recognized and respected brand in the market, and Lassonde intends to keep it alive for a very long time," said Jean Gattuso, President and Chief Operating Officer of Lassonde Industries Inc. "By joining forces, Lassonde and Sun-Rype will be well positioned to become a leading fruit-based snack and beverage company in Canada and the U.S. Hence, they will be able to provide a greater range of products to all Canadian and U.S consumers and retailers from coast to coast."
Lesli Bradley, President of Sun-Rype, said, "Lassonde's rich history in the marketplace and its growth and diversification makes it a strong leader in the industry. Adding the Sun-Rype brand and infrastructure to Lassonde will strengthen Sun-Rype and provide it, its employees and customers with great opportunities for the future."
Benefits of the transaction
The acquisition of Sun-Rype will:
- Improve Lassonde's manufacturing footprint in Western Canada and in the North-Western United States;
- Further strengthen the Company's presence in the Canadian branded juices and drinks sector;
- Enhance the commercial network of both companies, therefore improving support to national retailers throughout Canada; and,
- Increase the access to the complementary types of products offered by the combined entities to Canadian retailers and consumers, with a growth possibility for the North American market.
About Sun-Rype Products Ltd.
Sun-Rype Products Ltd. is a Canadian fruit-based snack and beverage manufacturer. Since its foundation in 1946, Sun-Rype has been producing juices and fruit snacks in Kelowna, British Columbia, in the Okanagan Valley. It also operates two other facilities located in Selah, and Wapato, Washington, United States.
Sun-Rype manufactures and sells, a variety of ready-to-drink fruit based juices and drinks under the Sun-Rype brand and fruit-based snacks under the Sun-Rype,
Fruit to Go, FruitSource and Good Bites brands. Its customers include grocery stores, club stores, and mass merchandisers, as well as wholesalers and drug stores.
Sun-Rype employs approximately 400 people. For more details about Sun-Rype's products and its community engagement, visit www.sunrype.ca or www.sunrypeusa.com.
About Lassonde Industries Inc.
Lassonde Industries Inc. is a North American leader in the development, manufacture and sale of a wide range of ready-to-drink fruit and vegetable juices and drinks marketed under brands such as Apple & Eve, Everfresh, Fairlee, Fruité, Graves, Oasis, Old Orchard and Rougemont. Lassonde is also one of the two largest producers of store brand shelf-stable fruit juices and drinks in the United States and a major producer of cranberry sauces.
Lassonde also develops, manufactures and markets specialty food products under brands such as Antico and Canton. The Company imports and markets selected wines from various countries and manufactures apple ciders and cider‑based beverages.
The Company produces superior quality products through the expertise of approximately 2,200 people working in 15 plants across Canada and the United States. To learn more, visit www.lassonde.com.
Caution Concerning Forward-Looking Statements
In this document and in other documents filed with Canadian regulatory authorities or in other communications, the Company may from time to time make written or oral forward-looking statements within the meaning of applicable securities legislation. Forward-looking statements notably include estimates, expectations, forecasts, and projections of future investment spending, revenues, expenses, earnings, profit, indebtedness, financial position, losses, upcoming projects, business and management strategies, and business growth and expansion. In the context of this document, forward-looking statements are particularly used to discuss preliminary results, the rate of sales growth, and profit attributable to shareholders. The forward-looking statements contained herein are used to help readers better understand Lassonde's financial position and the results of its operations as at the dates presented and may not be appropriate for other purposes. Forward-looking statements can be recognized by such words as "may," "should," "believes," "predicts," "plans," "expects," "intends," "anticipates," "estimates," "projects," "objective," "continues," "proposes," "targets," or "aims" as well as words and expressions of a similar nature and whether they are used in the affirmative or negative or used in the conditional or future tense. Forward-looking statements also include any statements that do not refer to historical facts.
By their very nature, forward-looking statements are based on assumptions and involve inherent risks and uncertainties, both general and specific in nature. It is therefore possible that the forecasts, projections and other statements will not be achieved or will differ significantly from those expressed or implied in such forward-looking statements or could affect the extent to which a particular forecast, projection or other statement materializes. Although Lassonde believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurances that these expectations will prove to be correct.
Readers are cautioned against placing undue reliance on forward-looking statements when making decisions, as the actual results could differ considerably from the opinions, plans, objectives, expectations, forecasts, estimates and intentions expressed in such forward-looking statements due to various significant factors. Such factors include, among others, the economic, industrial, competitive and regulatory environment in which Lassonde operates or factors that are likely to have an impact on its operations, its ability to attract and retain customers, consumers, and qualified staff, the availability and cost of raw materials and transportation, its operating costs, and the price of its finished products in the various markets where it operates.
The Company cautions that the foregoing list of factors is not exhaustive. For additional information about the risks, uncertainties, and assumptions that could cause Lassonde's actual results to differ from its stated expectations, readers may also consult the "Uncertainties and Principal Risk Factors" section of the Company's most recent annual MD&A and the other documents it files from time to time with securities regulators in Canada and available on www.sedar.com. The forward-looking statements contained in this press release reflect the Company's expectations on this date and are subject to change after this date. Lassonde does not undertake to update publicly or to revise these forward-looking statements, whether as a result of new information, future events or otherwise, unless required by applicable legislation or regulation.
SEDAR registration number: 00002099
SOURCE Lassonde Industries Inc.
Investor contact: Guy Blanchette, FCPA, FCA, Executive Vice-President and Chief Financial Officer, Lassonde Industries Inc., 450-469-4926, extension 10782; Media contact: Sylvain Morissette, Vice-President, Communications, Lassonde Industries Inc., 450-469-4926, extension 10265
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