SunOpta Inc.: Global Organic Supply Capabilities Expanded - Acquisition Of Pure Nature Organics Brand
It is estimated that this business will generate incremental profitable revenues of approximately $5.0 million to $7.0 million in the first year and continue to grow in following years as the products are further developed and incremental supply becomes available.
As per the terms of the agreements, SGOI has entered into arrangements with a number of strategic organic suppliers and processors, primarily in Central America, a relatively new but fast developing and growing area for the group, as well as relationships in other key growing regions, to develop supply sources for organic broccoli, green beans, edamame, asparagus and other vegetables and fruits. In addition, SGOI has assumed a number of existing customer contracts and relationships in North America for supply of organic private label and branded frozen vegetable products and expects to grow these relationships as supply and processing sources are expanded.
Joseph Stern, President of SunOpta Global Organic Ingredients, commented, "These agreements allow SGOI to act upon a key strategic initiative by not only diversifying its supply source for organic IQF vegetables and fruits, but also allowing the group to get much closer to the farm gate in a rapidly developing and reputable region for the procurement of commodities which are in global short supply."
Steve Bromley, President and Chief Executive Officer of SunOpta Inc., commented, "This transaction further expands SunOpta's global organic supply capabilities and also expands the Company's supply of branded and private label organic food products, both of which are key to our continued strategic growth plans. We intend to leverage the new customer and supply relationships in order to expand supply of various organic food products processed at existing SunOpta operations and also leverage SunOpta's extensive global expertise to bring a number of these products to markets serviced by Tradin Organics, a recent SunOpta acquisition."
About SunOpta Inc.
SunOpta Inc. is an operator of high-growth ethical businesses, focusing on integrated business models in the natural and organic food and natural health markets. The Company has three business units: the SunOpta Food Group, which specializes in sourcing, processing and distribution of natural and organic food products integrated from seed through packaged products; Opta Minerals Inc. (TSX:OPM) (66.6% owned by SunOpta), a producer, distributor, and recycler of environmentally friendly industrial materials; and SunOpta BioProcess Inc. which engineers and markets proprietary steam explosion technology systems for the bio-fuel, pulp and food processing industries. Each of these business units has proprietary products and services that give it a solid competitive advantage in its sector.
SOURCE: SunOpta Inc.
Jeremy N. Kendall, Chairman
Steve Bromley, President & CEO
John Dietrich, Vice President & CFO
Tony Tavares, Chief Operating Officer
Susan Wiekenkamp, Information Officer
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Lytham Partners, LLC
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