SunOpta has signed a definitive agreement to acquire the assets of Niagara Natural Fruit Snack Company Inc. (Niagara Natural) for US$6.7 million on a debt free basis.
Niagara Natural is a growing and innovative manufacturer of healthy non-genetically modified organism and organic fruit snacks, enhancing SunOpta’s existing healthy snack platform and focus on integrated consumer products.
With the acquisition, SunOpta extends its market presence in fruit snacks and have manufacturing operations in both the east and west of Canada to improve customer service and generate operational and logistical synergies.
The acquisition is expected to be immediately accretive to cash flows, and accretive in 2016 to earnings on a generally accepted accounting principles basis.
Based in the Niagara Region in Ontario, Canada, Niagara Natural is expected to generate approximately CDN$10 million (US$7.68 million) in revenue in 2015, and has approximately 35 employees, all of whom are expected to join SunOpta.
John Boot, who founded Niagara Natural in 2009 and serves as its president, will lead SunOpta’s combined fruit snack category.
