Lassonde closes acquisition of Jim Pattison Group’s Sun-Rype Products

Lassonde Industries Inc. (TSX: LAS) has completed the acquisition of Sun-Rype Products Ltd. and its two US affiliates from The Jim Pattison Group for a cash consideration of $89.3 million.

As part of the transaction, Lassonde assumed $21 million in liabilities related to long-term leases for the facilities located in Kelowna, BC, and Selah and Wapato in Washington.

Lassonde funds the acquisition from its existing credit facility.

Sun-Rype Products is a Canadian fruit-based snack and beverage manufacturer, which generated sales of approximately $164 million and an adjusted EBITDA of approximately $9 million for the 12-month period ending on September 30th, 2019. Sun-Rype employs approximately 400 people.

Sun-Rype Products were taken private by The Jim Pattison Group for $80.1 million or $37.2 million to minority shareholders in September 2013.

Rougemont, Quebec based Lassonde Industries Inc. is a North American leader in the development, manufacture and sale of a wide range of ready-to-drink fruit and vegetable juices and drinks marketed under brands such as Apple & Eve, Everfresh, Fairlee, Fruité, Graves, Oasis, Old Orchard and Rougemont.

photo credit: Sun-Rype

News Release

Lassonde Industries Inc. completes acquisition of Sun-Rype Products Ltd.

Rougemont, Quebec, January 3, 2020 – Lassonde Industries Inc. (TSX: LAS) (“Lassonde” or the “Company”) has completed the acquisition of Sun-Rype Products Ltd. (“Sun-Rype”) and its two US affiliates from The Jim Pattison Group for a cash consideration of $89.3 million further to the satisfaction of closing conditions, including Competition Bureau clearance. This amount includes $9.3 million in preliminary working capital adjustments and other adjustments. As part of the transaction, Lassonde assumed $21 million in liabilities related to long-term leases for the facilities located in Kelowna (BC), Selah and Wapato (WA).

The acquisition was financed by Lassonde’s existing credit facility. The transaction costs for Lassonde are estimated at $1.5 million.

“We are delighted to welcome Sun-Rype’s employees to the Lassonde team,” commented Nathalie Lassonde, Chief Executive Officer of Lassonde Industries Inc. “Both of our organizations have an excellent reputation in the market and a great tradition of innovation and service quality in fruit juice and food processing. We are pleased to be able to pursue our growth together.”

According to Jean Gattuso, President and Chief Operating Officer, Lassonde Industries Inc., “Completion of Lassonde’s acquisition of Sun-Rype is a major milestone in the growth of our respective companies. This acquisition paves the way for the pooling of talent, expertise and competence of food industry professionals, who share common values and are joining forces to continue to serve our customers’ current and future needs.”

About Sun-Rype Products Ltd.

Sun-Rype Products Ltd. is a Canadian fruit-based snack and beverage manufacturer, which generated sales of approximately $164 million and an adjusted EBITDA of approximately $9 million for the 12-month period ending on September 30th, 2019. Since it was founded in 1946, Sun-Rype has been producing juices and fruit snacks in Kelowna, British Columbia, in the Okanagan Valley. It also operates two other facilities located in Selah and Wapato, Washington, United States.

Sun-Rype manufactures and sells a variety of ready-to-drink fruit-based juices and drinks under the Sun-Rype brand and fruit-based snacks under the Sun-Rype, Fruit to Go, FruitSource and Good Bites brands. Its customers include grocery stores, club stores, and mass merchandisers, as well as wholesalers and drug stores.

Sun-Rype employs approximately 400 people. For more details about Sun-Rype’s products and its community engagement, visit www.sunrype.ca or www.sunrypeusa.com.

About Lassonde Industries Inc.

Lassonde Industries Inc. is a North American leader in the development, manufacture and sale of a wide range of ready-to-drink fruit and vegetable juices and drinks marketed under brands such as Apple & Eve, Everfresh, Fairlee, Fruité, Graves, Oasis, Old Orchard and Rougemont. Lassonde is also one of the two largest producers of store-brand, shelf-stable fruit juices and drinks in the United States and a major producer of cranberry sauces.

Lassonde also develops, manufactures and markets specialty food products under brands such as Antico and Canton. The Company imports and markets selected wines from various countries and manufactures apple ciders and cider-based beverages.

The Company produces superior-quality products through the expertise of approximately 2,200 people working in 15 plants across Canada and the United States. To learn more, visit www.lassonde.com.