SunOpta acquires Sunrise Growers for $444m

SunOpta, a Toronto-based firm focused on organic, non-genetically modified and specialty foods, has completed the acquisition of Sunrise Holdings (Delaware) from an investor group led by affiliates of Paine & Partners for $444m, in addition to certain purchase price adjustments.

The acquisition of Sunrise Holdings (Delaware), also known as Sunrise Growers, will complement SunOpta’s existing frozen fruit and ingredient processing operations, further its global sourcing network, and help achieve operational efficiencies by leveraging the strengths of both organisations.

SunOpta funded the acquisition through proceeds from an offering of $100m worth of common shares, issued on 30 September, and a $330m second lien loan, along with other borrowings under its existing credit facilities.

Paine & Partners acquired Sunrise in 2013. Under Paine & Partner’s leadership, Sunrise has completed three acquisitions, as well as made investments across its platform and expanded its distribution, customer base and supply chain.

Sunrise Growers offers a range of frozen fruit products in different packaging formats to retailers and foodservice customers.

It also maintains a global sourcing network with round-the-year access to fruit supply, and operates facilities in California, Kansas and Mexico, with around 300 full-time and 2,000 seasonal employees.

SunOpta president and CEO Rik Jacobs said: "We believe the acquisition of Sunrise Growers is transformative for our company as it provides us with the leading market position in conventional non-GMO and organic IQF fruit in the United States, and is expected to enhance our product mix, increase our revenue growth and margin profile, provide multiple synergy opportunities, and leverage our strategic focus on integrated consumer products.

"The addition of Sunrise Growers further expands our integrated consumer products segment which is focused on three key platforms: healthy fruit, healthy beverages and healthy snacks. We are excited to have the team from Sunrise join SunOpta, and they will take a leadership role in the integration and development of our healthy fruit platform."