SunOpta buys Niagara Natural Fruit Snack Company
Niagara Natural is a growing and innovative manufacturer of healthy non-GMO and organic fruit snacks, enhancing SunOpta's existing healthy snack platform and focus on integrated consumer products.
With the acquisition, SunOpta extends its market presence in fruit snacks and importantly will now have manufacturing operations in both the east and west, providing a competitively positioned platform to improve customer service and also generate meaningful operational and logistical synergies.
The acquisition is expected to be immediately accretive to cash flows, and accretive in 2016 to earnings on a GAAP basis.
Based in the Niagara Region in Ontario, Canada, Niagara Natural is expected to generate approximately CDN $10 million in revenue in 2015, and has approximately 35 employees, all of whom are expected to join SunOpta.
John Boot, who founded Niagara Natural in 2009 and serves as its president, will lead SunOpta's combined fruit snack category.
The transaction is valued at approximately $6.7 million on a debt free basis, plus potential future payments based on specific performance targets, and is subject to certain post-closing adjustments. The purchase will be funded through cash on hand and existing credit facilities. ■