04.05.2007 11:41:00
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SunOpta Completes Acquisition of Certain Assets of Baja California Congelados, S.A. de C.V.
SunOpta Inc. (SunOpta or the Company) (Nasdaq:STKL) (TSX:SOY) today
announced that it has completed the acquisition of certain assets of
Baja California Congelados, S.A. de C.V. ("BCC”),
of Rosarito, Baja California, Mexico. The purchase price consisted of
cash and was paid on closing.
BCC is the leading frozen strawberry processor in Baja California,
Mexico. Under the terms of the agreement, SunOpta purchased all of the
physical assets of the production facility located in Rosarito and also
assumed a long-term lease for the facility, located 20 miles south of
San Diego, California. In addition, SunOpta entered into five year
supply agreements with Andrew & Williamson Sales Co., ("Andrew
Williamson”) the San Diego-based former parent
of BCC. The agreements provide for the supply of strawberries from both
the Baja California and Oxnard, California growing regions to the
Rosarito facility in addition to SunOpta’s
existing California facilities. As a result, SunOpta expects to add in
excess of 20 million pounds of strawberries to the Company’s
integrated supply chain by 2008, resulting in annualized revenues of
approximately $14 million.
Andrew Williamson has agreed to provide operational and customer service
support to assist SunOpta in transitioning the facility under SunOpta
management.
Sergio Varela, President of the SunOpta Fruit Group commented, "The
incremental capacity and raw material supply is critical to meeting the
growth in demand in the natural and organic fruit market. This
transaction is highly synergistic with our existing berry operations and
will significantly improve our ability to serve fast growing markets.”
Steve Bromley, President and Chief Executive Officer of SunOpta Inc.
commented, "This transaction is consistent
with our strategic plan to expand our global sourcing and production
capabilities in order to meet customer demand and ensure reliable and
quality supply of natural and organic fruit products. We are extremely
pleased with this strategic expansion of our international sourcing and
processing capabilities.”
About SunOpta Inc.
SunOpta Inc. is an operator of high-growth ethical businesses, focusing
on integrated business models in the natural and organic food,
supplements and health and beauty markets. 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 SunOpta BioProcess Group (soon to become
SunOpta BioProcess Inc.) which engineers and markets proprietary steam
explosion technology systems for the pulp, bio-fuel and food processing
industries. Each of these business units has proprietary products and
services that give it a solid competitive advantage in its sector.
Forward-Looking Statements
Certain statements included in this press release may constitute "forward-looking
statements” within the meaning of the United
States Private Securities Litigation Reform Act of 1995. These
forward-looking statements include, but are not limited to references to
business strategies, competitive strengths, goals, capital expenditure
plans, business and operational growth plans and references to the
future growth of the business. These forward looking statements are
based on certain assumptions and analyses made by the Company in light
of its experience and its interpretation of current conditions,
historical trends and expected future developments as well as other
factors that the Company believes are appropriate in the circumstance.
However, whether actual results and developments will agree with
expectations and predications of the Company is subject to many risks
and uncertainties including, but not limited to; general economic,
business or market risk conditions; competitive actions by other
companies; changes in laws or regulations or policies of local
governments, provinces and states as well as the governments of United
States and Canada, many of which are beyond the control of the Company.
Consequently all forward-looking statements made herein are qualified by
these cautionary statements and there can be no assurance that the
actual results or developments anticipated by the Company will be
realized.
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