SunOpta completes purchase of juice company
August 10, 2011
by Jeff Gelski
TORONTO — SunOpta Global Organic Ingredients Inc., a subsidiary of SunOpta Inc., has completed its acquisition of the assets and business of Lorton’s Fresh Squeezed Juices Inc. Based in San Bernardino, Calif., Lorton’s is a vertically integrated producer of citrus-based products in both industrial and packaged formats and has annual revenues of about $10 million.
“We are very pleased to have completed this transaction as it enables us to vertically integrate and expand our industrial and retail citrus products business,” said Joseph Stern, president of SunOpta Food Solutions. “Lorton’s has been a long-standing supplier to SunOpta for our citrus program, and this transaction continues the evolution of our strategic relationship. We believe that controlling our own operation will allow us to cost-effectively expand our industrial and packaged citrus programs.”
Purchase price for the assets and business was $2.5 million, on a debt-free basis, subject to post-closing working capital adjustments, plus a potential earn-out dependent upon the achievement of certain future targets.
“This acquisition will leverage our strengths in sourcing and supply of citrus products and further strengthens our vertically integrated model from sourcing through ingredients and finished packaged products,” said Steve Bromley, president and chief executive officer of Toronto-based SunOpta Inc. “This is consistent with our strategy to continue to grow our core value-added natural and organic foods platform.”