SunOpta Inc. announced the sale of its sunflower business to Pacific Avenue Capital Partners for $16 million, subject to certain post-closing adjustments today. The transaction closed on Tuesday, 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,” said Joe Ennen, Chief Executive Officer of SunOpta.
SunOpta’s sunflower and roasted snacks business formed part of its Plant-Based Foods and Beverages segment and includes three facilities in Crookston, Breckenridge, and Grace City, North Dakota. Under Pacific Avenue’s stewardship, the acquired sunflower business will become Sunrich Products.
Before the divestiture, SunOpta’s sunflower business employed 111 people, all of whom will transfer with the business to Pacific Avenue Capital Partners. The business will continue to be led by the same general manager and employee team to ensure a smooth transition. 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 the 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 by SunOpta’s Third Quarter 2022 Financial Results Release.
