SunOpta has signed a definitive agreement to sell its fiber and starch business to J. Rettenmaier & Söhne Group (JRS) for US$37.5 million, subject to certain post-closing adjustments.
“The sale of our fiber and starch business aligns with our stated strategies and enhances our focus on the faster growing areas of our business that fit our vertically integrated business model,” said Steve Bromley, SunOpta CEO.
“While the fiber and starch business offered limited synergies with our core business, we believe that JRS is well positioned when it comes to fiber and customized ingredients and will be able to scale the business, which should serve the industry well and be positive for our transitioning employees.”
SunOpta’s fiber and starch business includes five facilities located in Louisville, KY, Cedar Rapids, IA, Cambridge, MN, Fosston, MN, Galesburg, IL, all of which will now be part of the JRS portfolio of food operations.
The fiber and starch business accounted for approximately 4% of SunOpta Foods’ total revenues in fiscal 2013 and during the first three quarters of 2014.
The company will continue to operate both its integrated grain and fruit based ingredient platforms which were not part of the sale and currently form the remainder of the Value-Added Ingredient segment.
