SunOpta to Sell Global Ingredients Unit to Amsterdam Commodities

LinkedIn Pinterest Tumblr

SunOpta Inc., a Minneapolis, Minnesota, USA-headquartered supplier of organic ingredients, plant-based and frozen fruit-based ingredients for smoothies, sorbets, ice cream, baked goods and other products, is selling its global ingredients business comprising the Organic Corporation B.V. and Tradin Organics USA LLC (together, Tradin) and related assets to Amsterdam Commodities NV (Acomo) for €330 million. The deal, which remains subject to customary closing conditions, is expected to be finalized by January 2021.

Tradin is active in more than 100 countries offering a full service, diversified organic product portfolio (including frozen berries, tropical fruits, citrus, dried products, cocoa, oils, coffee and premium juice) based on its unique sourcing, processing and distribution capabilities. With approximately 55 percent of sales generated in North America and about 40 percent in EMEA, Tradin adds significant scale and diversification to Acomo’s core geographies and end markets.

“This transaction further solidifies SunOpta’s future direction as a high-growth, plant-based company focused on providing value-added products in competitively advantaged categories with consistent, sustainable, above average growth characteristics. The long-term supply agreement negotiated as part of this transaction provides us with the benefit of a continued strategic relationship with a leading global ingredient player in Acomo,” stated CEO Joe Enmen.

He added that the sale “deleverages and strengthens SunOpta’s balance sheet, enabling the acceleration of near-term expansion plans in our fast-growing plant-based food and beverage segment.” The plans include both high return capital investment projects, as well as synergistic acquisitions.

Under the terms of the agreement, SunOpta will sell processing plants in Amsterdam, the Netherlands; Silistra, Bulgaria; Addis Ababa, Ethiopia; and Yirgalem, Ethiopia. These facilities and their employees will continue to operate in ordinary course, with approximately 525 employees being transferred from SunOpta to Acomo.

The global ingredients business being sold contributed approximately US $488 million to SunOpta’s net sales for the twelve months ending on September 26, 2020. The transaction valuation represents an approximate 10x multiple of Adjusted EBITDA for the standalone business.