The Sun-Rype plant in Kelowna is pictured in this undated image from Google Street View.
Image Credit: GOOGLE STREET VIEW
January 05, 2020 - 6:00 AM
One of the Okanagan's biggest business successes has changed hands.
Lassonde Industries Inc., which is based in Quebec, announced that it 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 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 as well as Selah and Wapato Washington.
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,” Nathalie Lassonde, Chief Executive Officer of Lassonde Industries Inc. said in a press release “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 togethe
This acquisition, Jean Gattuso, President and Chief Operating Officer of Lassonde Industries Inc., said 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.
The deal is expected to improve Lassonde's manufacturing footprint in Western Canada and in the northwestern United States.
"Sun-Rype is in good hands with Lassonde," Jim Pattison, Chairman and CEO of The Jim Pattison Group, said in the press release announcing the sale months earlier.
Sun-Rype generated sales of approximately $164 million and an adjusted EBITDA of approximately $9 million for a 12-month period that ended on Sept. 30.
Sun-Rype has been producing juices and fruit snacks in Kelowna, since 1946.In total it employs approximately 400 people.
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