Lassonde to acquire Sun-Rype
Lassonde Industries Inc announced that two of its subsidiaries have entered into an agreement with subsidiaries of The Jim Pattison Group (JPG), to acquire Sun-Rype Products Ltd. a Canadian fruit-based snack and beverage manufacturer headquartered in Kelowna, B.C., and its two U.S. affiliates located in Washington State.
There is a cash consideration of approximately $80 million, subject to working capital adjustments and other adjustments, payable upon closing of the transaction. The cash consideration reflects excess working capital estimated at $7 million. As part of the transaction, Lassonde will assume $21 million in lease liability related to long-term leases for the facilities located in Kelowna, and the Washing State affiliates in Selah and Wapato.
Sun-Rype generated sales of approximately $164 million and an adjusted EBITDA of approximately $9 million for the 12-month period ending on Sept. 30, 2019. The acquisition will be financed by Lassonde’s Canadian existing credit facility and is subject to customary conditions including the approval of the Competition Bureau. The closing of the transaction is expected towards the end of 2019. Lassonde’s transaction costs are estimated at $1.5 million.