Lassonde Industries Inc. has announced that two of its subsidiaries have entered into an agreement with subsidiaries of The Jim Pattison Group to acquire Canadian fruit-based snack and beverage company Sun-Rype Products Ltd.
Lassonde will also acquire two Sun-Rype U.S. affiliates based in Selah and Wapato, WA. The total cash value of the transaction is around $80 million.
Sun-Rype had sales of approximately $164 million for the 12-month period ending September 30. The company 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.
In announcing the transaction, Lassonde said it expected the deal to:
- improve its manufacturing footprint in Western Canada and in the Northwestern U.S.;
- further strengthen its presence in the Canadian branded juices and drinks sector;
- enhance the commercial network of both companies, thus improving support to national retailers throughout Canada; and,
- increase Canadian retailers’ access to the complementary product offerings of the combined entities, with growth potential for the North American market.
"It is with great pride and enthusiasm that we look forward to welcoming Sun-Rype's management team and employees to Lassonde,” said Nathalie Lassonde, CEO of Lassonde Industries Inc. “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."
The transaction is expected to close towards the end of 2019.