Canada’s SunOpta to secure $60m investment from Oaktree and Engaged

Canadian speciality foods company SunOpta has entered a financing agreement with alternative investment management firms Oaktree Capital Management and Engaged Capital.

The two companies have agreed to invest $60m in SunOpta in the form of exchangeable preferred shares, which will be issued by the company’s wholly owned subsidiary SunOpta Foods.

The investment will be used by the company to further expand its plant-based foods and beverages business by increasing capacity through capital projects.

SunOpta CEO Joe Ennen said: “Our plant-based food and beverage business is the growth engine of the company delivering outstanding revenue and EBITDA growth. In 2019, we grew revenue 15% and gross profit of 45% in plant-based foods and beverages, and we are confident in the long-term growth potential of this segment.

“We are making significant investments in this business now to ensure that we can continue to drive aggressive growth in 2021 and beyond. After concluding a comprehensive review of financial alternatives involving a Special Committee of the Board, we are excited to extend our partnership with Oaktree and Engaged.”

The investment will be made in two tranches. The first tranche will comprise $30m of Series B-1 Preferred, which will be issued on or about 24 April.

Under the agreement, SunOpta also has the option to require Oaktree and Engaged purchase a second tranche of the Series B-2 Preferred for up to $30m by serving a notice to the investment firms on or before July 15.