Located in San Bernadino, Cal., Lorton's is a vertically integrated producer of a variety of citrus based products in both industrial and packaged formats, with revenues of approximately $10 million. The acquisition expands SunOpta's vertically integrated operations into the extracting, processing and packaging of citrus based ingredients through consumer packaged products. These facilities have capacity for further growth and expansion.
Purchase price for the assets and business was $2.5 million, on a debt free basis, subject to post closing working capital adjustments, plus a potential earn-out dependent upon the achievement of certain future targets. The acquisition of Lorton's assets and business is expected to be accretive to SunOpta in fiscal 2012.
Tom Treinen, president of Lorton's commented, "I am pleased to enter into this transaction with SunOpta and to remain with the business operations, leveraging our joint capabilities. I look forward to growing the business together based on our commitment to supplying healthy natural and organic products to the marketplace. I would like to thank our loyal customers and the dedicated employees of Lorton's for their commitment and hard work as we now join the SunOpta family."
Joseph Stern, president of SunOpta Food Solutions commented, "We are very pleased to have completed this transaction as it enables us to vertically integrate and expand our industrial and retail citrus products business. We welcome Tom and all of the Lorton's employees to SunOpta. Lorton's has been a long standing supplier to SunOpta for our citrus program and this transaction continues the evolution of our strategic relationship. We believe that controlling our own operation will allow us to cost-effectively expand our industrial and packaged citrus programs."
Steve Bromley, president and chief executive officer of SunOpta Inc. commented, "This acquisition will leverage our strengths in sourcing and supply of citrus products and further strengthen our vertically integrated model from sourcing through ingredients and finished packaged products. This is consistent with our strategy to continue to grow our core value-added natural and organic foods platform. We would like to welcome Tom and his dedicated team to SunOpta."
From the August 8, 2011, Prepared Foods' Daily News.