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.