By Robb M. Stewart
SunOpta sold certain frozen fruit assets to a Canadian company in a deal worth $141 million, marking its exit from frozen fruit.
The sale to Quebec-based Nature’s Touch included the primary assets of SunOpta’s frozen fruit business, including facilities in Edwardsville, Kan., and Jacona, Mexico, along with a significant quantity of frozen fruit inventory.
The deal is a milestone in the company’s restructuring efforts to focus on plant-based and healthy snacks. The proceeds will be used to reduce debt.
“This transaction is significantly accretive to margins, results in a more capital efficient business model, strengthens our balance sheet and ensures we are singularly focused on the most attractive growth opportunities,” said Chief Executive Joe Ennen.
The sale includes $20 million of seller promissory notes due in three years.
SunOpta said it is maintaining its financial guidance, adjusting for the sale of the frozen assets, and revenue from continuing operations is expected to increase 6% year-over-year to $152 million in the third quarter, driven by volume growth.
Write to Robb M. Stewart at [email protected]
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