TORONTO, May 13, 2004 (BUSINESS WIRE) -- SunOpta Inc. (SunOpta or the Company) (STKL) (CA:SOY) today announced that it has reached an agreement in principle to acquire the natural and organic distribution business known as Snapdragon Natural Foods Inc. ("Snapdragon") from its parent company, I-D Foods Corporation. Snapdragon distributes organic groceries and frozen products to both the mass market and natural food retailers across Canada with warehousing facilities located in Montreal, Quebec, Toronto, Ontario and Calgary, Alberta. The Snapdragon operation will further contribute to the Company's stated objective of building Canada's first national natural and organic foods distributor.
The transaction is an asset purchase and includes the purchase of inventory and the current business of Snapdragon. No liabilities will be assumed in the acquisition and I-D Foods Corporation will provide warehousing, distribution and sales representation services to SunOpta until such time as activities are transitioned to Supreme Foods and other operations within the Company's natural and organic distribution network.
The transaction is subject to completion of due diligence and definitive agreements and is expected to close on or about May 31, 2004.
SunOpta Inc. is an owner/operator of high-growth ethical businesses, focusing on integrated business models in the natural and organic food markets. For the last six consecutive years, SunOpta was included in Profit magazine's 'Profit 100' list of the 100 fastest growing companies in Canada. 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; the Opta Minerals Group, a producer, distributor, and recycler of environmentally friendly industrial materials; and the StakeTech Steam Explosion Group that engineers and markets clean pulping systems using patented steam explosion technology. Each of these business units has proprietary products and services that give it a solid competitive advantage in its sector.