SunOpta, a leading company in the food industry, has successfully sold its frozen fruit assets to Nature’s Touch, a Canadian company based in Quebec. The deal, valued at $141 million, marks SunOpta’s complete exit from the frozen fruit business.
The assets included in the sale are the primary facilities located in Edwardsville, Kansas, and Jacona, Mexico, as well as a substantial amount of frozen fruit inventory. This strategic move allows SunOpta to focus its resources on the flourishing plant-based and healthy snacks market.
The sale of these assets will play a vital role in SunOpta’s ongoing efforts to reduce debt. As a result, the company anticipates a more capital-efficient business model and a strengthened balance sheet. Chief Executive Joe Ennen expressed enthusiasm for this transaction, stating that it will lead to improved margins and enable the company to concentrate on the most promising growth opportunities.
As part of the deal, SunOpta has also issued $20 million in seller promissory notes, which are due within three years.
Despite the divestment of its frozen fruit business, SunOpta remains confident in reaching its financial goals. Adjusting for the sale, the company expects continued revenue growth for the third quarter, with a projected year-over-year increase of 6% to reach $152 million. This growth will be primarily driven by increased volume.
