SunOpta Announces Acquisition of Plant-Based Brands Dream and WestSoy
With broad distribution across natural and organic channels, in addition to traditional grocery channels, Dream is a strong platform from which SunOpta can drive growth.
SunOpta Inc. (“SunOpta” or the “Company”) (Nasdaq:STKL) (TSX:SOY), a leading healthy food and beverage company focused on plant-based foods and beverages and fruit-based foods and beverages, today announced the acquisition of the Dream® and WestSoy® plant-based beverage brands from The Hain Celestial Group, Inc.
The acquired brands will add to SunOpta’s Plant-Based Foods and Beverages segment, further accelerating growth in this competitively advantaged business. The Dream brand is the #2 brand of shelf-stable, plant-based milks, originally launched in 1982. As one of the pioneers in plant-based milks, Dream has been a leader in introducing millions of consumers to plant-based beverages over the last 40 years. With broad distribution across natural and organic channels, in addition to traditional grocery channels, Dream is a strong platform from which SunOpta can drive growth. SunOpta currently produces approximately 50% of the Dream product portfolio and has done so for over a decade. The WestSoy brand is the only branded shelf stable soy beverage with a USDA organic certification and the American Heart Association certification of a heart-healthy product. Available at many leading national retailers, SunOpta currently produces the entire WestSoy product portfolio.
The purchase price is $33 million, funded principally by a new $20 million FILO term loan within SunOpta’s ABL facility at LIBOR plus 250 to 300 basis points, depending on the utilization of the ABL facility.
Joe Ennen, SunOpta’s Chief Executive Officer said, “This transaction is very consistent with our previously stated objective of pursuing strong organic and inorganic growth in our plant-based business. As previously communicated, our interest in brands is to allow the acceleration of innovation by giving us platforms to pursue emerging or niche opportunities. These two brands are perfect examples of niche brands that complement, but do not directly compete with, our vitally important co-manufactured partners. Since SunOpta has been manufacturing these brands for years, when this opportunity presented itself it was an obvious fit for us to own these brands. These leading brands will receive the appropriate attention within SunOpta, along with an objective of developing growth opportunities for each of the Dream and WestSoy branded products.”
About SunOpta Inc.
SunOpta Inc. is a leading company specializing in the sourcing, processing and production of organic, natural and non-GMO plant-based and fruit-based food and beverage products.
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