SunOpta Inc., a U.S.-based global pioneer fueling the future of sustainable, plant-based and fruit-based foods and beverages, announced the sale of its sunflower business to Pacific Avenue Capital Partners for $16.0 million, subject to certain post-closing adjustments. The transaction closed on October 11, 2022.
“This divestiture of a non-core business represents further progress against our strategic imperative of portfolio transformation, focusing on high-growth, high-return opportunities that are differentiated and leverage the competitive strengths of our unique model,” Joe Ennen, chief executive officer of SunOpta, said in the announcement.
SunOpta's sunflower and roasted snacks business formed part of its Plant-Based Foods and Beverages segment and includes three facilities located in Crookston, Minnesota, Breckenridge, Minnesota, and Grace City, North Dakota. Under Pacific Avenue’s stewardship, the acquired sunflower business will become Sunrich Products. Sunrich will continue to be led by the same general manager and employee team.
Following the divestiture, the Plant-Based Foods and Beverages segment will be fully focused on offering a broad line of plant-based beverages utilizing oat, almond, rice, soy, coconut, hemp and other bases, as well as broths, teas, nutritional beverages and liquid and powder ingredients.
The company expects to record an estimated after tax loss on sale of the sunflower business of approximately $16 million, which will be included in its results of operations for the third quarter of 2022. Additional details regarding the expected pro forma financial impact from the sale, along with expanded commentary on this development will be provided in SunOpta’s third quarter 2022 financial results release.
D.A. Davidson & Co. is serving as financial advisor, and Faegre Drinker Biddle & Reath is serving as legal advisor to SunOpta.
Honigman LLP is serving as legal advisor to Pacific Avenue.
