Lassonde Industries Inc. said Jan. 3 that it completed its acquisition of snack and beverage maker Sun-Rype Products Ltd. and its two affiliates in the U.S.
The Canadian agri-food company bought Sun-Rype and its associated businesses from The Jim Pattison Group for C$89.3 million in cash, including C$9.3 million in preliminary working capital adjustments.
Sun-Rype, which was founded in 1946, recorded sales of approximately C$164 million and an adjusted EBITDA of about C$9 million for the year ended Sept. 30, 2019.
As part of the deal, Lassonde assumed C$21 million in liabilities related to long-term leases for the facilities in Kelowna, British Columbia, and Selah and Wapato, Wash.
"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," Lassonde CEO Nathalie Lassonde said.
Lassonde funded the deal with its existing credit facility. The company estimates the transaction costs are about C$1.5 million.