Lassonde juice maker buying BC’s Sun-Rype for $100M
By CP STAFFGeneral Food & Beverage Manufacturing beverage food manufacturing
Acquisition strengthens Quebec company's presence in Canadian and US markets.
ROUGEMONT, Que. — The Quebec maker of the Rougemont and Oasis juice brands says it is buying BC fruit-based snack and beverage manufacturer Sun-Rype Products Ltd. for about $100 million.
Lassonde Industries Inc. says two of its subsidiaries have entered into an agreement with subsidiaries of The Jim Pattison Group to acquire the Kelowna, BC-based company and two US affiliates located in Washington State.
An $80 million cash payment, subject to working capital adjustments, is payable upon closing of the transaction, expected towards the end of the year.
Lassonde will also assume $21 million in lease liability related to long-term facility leases. Sun-Rype employs about 400 people while Lassonde has about 2,200 people working in 15 plants in Canada and the US.
Sun-Rype generated sales of about $164 million and an adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of about $9 million for the 12-month period ending Sept. 30.
The deal is subject to customary conditions, including approval of the Competition Bureau.
“This transaction is part of our strategy of constant and measured growth and will strengthen our presence in the Canadian and US markets,” said Nathalie Lassonde, CEO of Lassonde.