June 14, 2010
SUNOPTA COMPLETES DIVESTITURE OF CANADIAN
TORONTO, June 14, 2010 - SunOpta Inc. ("SunOpta" or the "Company") (Nasdaq:STKL)
(TSX:SOY) today announced that it has completed the previously announced divestiture of the
Company’s Canadian Food Distribution Assets to United Natural Foods, Inc. (“UNFI”) and
UNFI Canada, Inc., a wholly owned subsidiary of UNFI for cash consideration of approximately
CDN $68 million.
The Food Distribution Assets included in this transaction formed part of the SunOpta
Distribution Group (“SDG”). SunOpta has retained the natural health products distribution and
manufacturing assets which represent the balance of the assets in SDG. All active employees
directly involved in the Canadian food distribution operations were offered employment with
UNFI, the leading distributor of natural, organic and specialty foods in the United States.
For fiscal 2009, SDG realized revenues of US $237.3 million. The Canadian food distribution
operations generated revenues for that period of US $169.6 million and positive operating
earnings while the natural health products operations generated the balance of the revenues for
the period of US $67.7 million, realizing negative operating earnings due in most part to
additional costs in the year related to the relaunch of a number of natural health products brands.
The Company expects to realize a net gain on the sale of the Canadian food distribution assets
with the amount being dependent on finalization of the closing balance sheet and related closing
costs.
“We are very happy to have closed this acquisition as it represents the latest step in our strategy
to grow our business in the Canadian market and we look forward to working closely with our
new UNFI Canada associates,” commented Steve Spinner, President and Chief Executive Officer
of UNFI.
Steve Bromley, President and Chief Executive Officer of SunOpta, commented, "Completing
this divestiture is an important step in our strategy to focus on our core food manufacturing
platform, strengthening our balance sheet and positioning the Company for the future. We are
very proud of the attractive platform that has been put in place and are pleased that UNFI, a
company that we have long admired, will be building on this platform. Once again we want to
express our sincere appreciation to our dedicated employees for their years of hard work and
dedication and wish them continued success under UNFI’s leadership.”
About United Natural Foods
United Natural Foods, Inc. (http://www.unfi.com) carries and distributes more than 60,000 products to more than
17,000 customer locations nationwide. The Company serves a wide variety of retail formats including conventional
supermarket chains, natural product superstores, independent retail operators and the food service channel. United
Natural Foods, Inc. was ranked by Forbes in 2005 as one of the "Best Managed Companies in America," ranked by
Fortune in 2006 – 2010 as one of its "Most Admired Companies," winner of the Supermarket News 2008
Sustainability Excellence Award, and recognized by the Nutrition Business Journal for its 2009 Environment and
Sustainability Award.
About SunOpta Inc.
SunOpta Inc. is an operator of high-growth ethical businesses, focusing on integrated business models in the natural
and organic foods and natural health products markets. The Company has three business units: the SunOpta Food
Group, which specializes in sourcing, processing and packaging of natural and organic food products integrated
from seed through packaged products; Opta Minerals Inc. (TSX:OPM) (66.4% owned by SunOpta), a producer,
distributor, and recycler of environmentally friendly industrial minerals; and SunOpta BioProcess Inc. which
engineers and markets proprietary steam explosion technology systems for the bio-fuel, pulp 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 be considered "forward-looking statements" within the
meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities
legislation. These forward-looking statements are based on information available to us on the date of this release,
and are attributable solely to SunOpta and not to UNFI or any other person or company. These forward-looking
statements include, but are not limited to, the anticipated gain on the sale of the Canadian food distribution assets.
Terms and phrases such as “will”, “expects”, and other similar terms and phrases are intended to identify these
forward-looking statements. Forward looking statements are based on estimates and assumptions made by the
Company in light of its experience and its perception of historical trends, current conditions and expected future
developments as well as management's best judgment based on current facts and assumptions that management
considers reasonable, including that there are no material unanticipated variations in anticipated closure costs. The
Company makes no representation that reasonable business people in possession of the same information would
reach the same conclusions. Forward-looking statements involve known and unknown risks, uncertainties and other
factors which may cause the actual results, performance or achievements of the Company to be materially different
from any future results, performance or achievements expressed or implied by the forward-looking statements
including those detailed under "Risk Factors" in the Company's Annual Report on Form 10-K and its Quarterly
Reports on Form 10-Q (available at www.sec.gov). 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.
For further information, please contact:
SunOpta Inc.
Steve Bromley, President & CEO
Eric Davis, Vice President & CFO
Tony Tavares, Vice President & COO
Susan Wiekenkamp, Information Officer
Tel: 905-455-2528, ext 103
susan.wiekenkamp@sunopta.com
Website: www.sunopta.com
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About Purity Life Health Products
Purity Life Health Products was established in 1984 as a small distributor of natural health products and, over the years has grown to be Canada's largest supplier and manufacturer of natural health products. Purity Life has over 200 product lines, carries roughly 6,000 SKU's and services over 2,800 customers from both its Eastern (Acton) and Western (Vancouver) distribution facilities. Purity Life has won numerous industry awards, and is home to some of the industry's most newsworthy brands including Quest®, Nature’s Harmony®, Vivitas®, Herbon®, Kyolic®, and RxBalance®.
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 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.
For further information, please contact:
Purity Life Health Products
Matthew James, Senior VP & General Manager
519 853-3511 ext 264
matthew@puritylife.com |
