SunOpta Global Organic Ingredients, an indirect wholly-owned subsidiary of SunOpta, a Canadian company specialized in sourcing, processing and packaging of natural and organic food products, has acquired the assets and business of US based Lorton's Fresh Squeezed Juices.
The purchase price was $2.5m, on a debt free basis, and is subject to post closing working capital adjustments, plus a potential earn-out dependent upon the achievement of certain future targets.
The acquisition, which is expected to be accretive to SunOpta in fiscal 2012, will expand the Canadian company's vertically integrated operations into extracting, processing and packaging of citrus-based ingredients through consumer-packaged products.
SunOpta president and CEO Steve Bromley said the acquisition will leverage the company's strengths in sourcing and supply of citrus products and further strengthen its vertically integrated model from sourcing through ingredients and finished packaged products.
"This is consistent with our strategy to continue to grow our core value-added natural and organic foods platform. We would like to welcome Tom and his dedicated team to SunOpta," Bromley said.
Lorton's, with revenues of about $10m, is a vertically integrated producer of a variety of citrus based products in both industrial and packaged formats.
SunOpta Global Organic Ingredients focuses on organic private label turn-key solutions in a variety of product categories, including juices, frozen fruits and vegetables, specialty beverages, vitamin waters, electrolyte waters, energy drinks, soups and tomato products.