ROUGEMONT, QC, May 21, 2013 /CNW Telbec/ - Lassonde Industries Inc.
(TSX: LAS.A) ("Lassonde") has agreed with members of the Pappas family
to purchase all of the shares of Clement Pappas and Company, Inc.
("CPC") held by the Pappas family members other than Clement David
Pappas, a long-time CPC executive and its current CEO. The purchase
price of US$ 21.2 million is to be paid cash and will be funded out of
Lassonde's working capital. Closing of the transaction is expected to
occur in May 2013.
This transaction extinguishes financial liabilities associated with the
purchased shares, accounted for as retractable financial instruments.
As a result, the Company expects that a gain, net of related costs,
totalling approximately US$ 0.8 million will be recognized.
Upon closing of the transaction, Lassonde's equity interest in CPC will
be increased from 70.7% to 84.0%; of the remaining 16.0%, 6.0% is held
by Clement David Pappas and 10.0% by members of the Lassonde family.
Lassonde has also agreed to guarantee a minimum price upon exercise of
the existing put and call rights provided in the CPC shareholders
agreement in respect of the shares held by Clement David Pappas.
"Our investment in CPC in 2011 was made in accordance with our business
and strategic plan. This additional investment in CPC confirms our
confidence in the success of this plan and in our continued partnering
with CPC's lead executive," said Mr. Pierre-Paul Lassonde, chairman and
CEO of Lassonde Industries Inc.
About Lassonde Industries Inc.
Lassonde Industries Inc. is a North American leader in the development,
manufacture and sale of a wide range of fruit and vegetable juices and
drinks marketed under brands such as Everfresh, Fairlee, Flavür,
Fruité, Graves, Oasis and Rougemont.
Lassonde is also the second largest producer of store brand
ready-to-drink fruit juices and drinks in the United States and a major
producer of cranberry juices, drinks and sauces.
Lassonde also develops, manufactures and markets specialty food products
under brands such as Antico and Canton. The Company imports and markets
selected wines from various countries and manufactures apple ciders and
wine-based beverages.
The Company produces superior quality products through the efforts of
some 2,000 people working in 14 plants across Canada and the United
States. To learn more, visit www.lassonde.com.
SEDAR registration number: 00002099
Caution Concerning Forward-Looking Statements
This press release contains forward-looking statements that are based on
certain assumptions. These forward-looking statements are subject to a
number of risks and uncertainties that could cause actual results or
events to differ materially from current expectations. Additional
factors are discussed in materials filed from time to time with the
securities regulatory authorities in Canada. Lassonde Industries Inc.
disclaims any intention or obligation to update or revise any
forward-looking statements except as required by law.
SOURCE: Lassonde Industries Inc.
