Canadian processor acquires Bulgarian facility
SunOpta has acquired Organic Land Corporation, a grains handling and processing facility and a U.S.-Bulgarian joint venture
Toronto – A Canadian processor of natural, organic and specialty food has acquired an American-Bulgarian joint venture based in Silistra, Bulgaria.
SunOpta Inc. announced today that it had completed the acquisition of Organic Land Corporation OOD (OLC), a grains handling and processing facility.
The facility is currently a strategic supplier for SunOpta and produces value-added sunflower kernel, oil and related by-products. SunOpta says this acquisition will further expand its global sourcing platform and value-added ingredient capabilities.
The purchase price was EUR 3.2 million, inclusive of debt, and is subject to normal closing adjustments.
Key personnel will remain with the operations and the former shareholders of OLC will be eligible for an earn-out over the next three years based on specified EBITDA targets. The acquisition was funded via existing credit facilities.
Silistra is located in northeast Bulgaria, close to the Black Sea and the Danube River Delta. Located nearby in Romania is a sizable agricultural area that is protected and chemical free, with many growers producing organic products including sunflower, flax seed, corn, barley and soy beans.
SunOpta says it intends to expand its presence in this region across these key product categories and will also expand the facility by adding additional storage and processing capabilities to maximize supply sources for value-added processing.