Lassonde Industries Inc. completes acquisition of Sun-Rype Products Ltd.

ROUGEMONT, QC, Jan. 3, 2020 /CNW Telbec/ - Lassonde Industries Inc. (TSX: LAS) ("Lassonde" or the "Company") has completed the acquisition of Sun-Rype Products Ltd. ("Sun-Rype") 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 (BC), Selah and Wapato (WA).

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," commented Nathalie Lassonde, Chief Executive Officer of Lassonde Industries Inc. "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 together."

According to Jean Gattuso, President and Chief Operating Officer, Lassonde Industries Inc., "Completion of Lassonde's acquisition of Sun-Rype is a major milestone in the growth of our respective companies. This acquisition 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." 

About Sun-Rype Products Ltd.

Sun-Rype Products Ltd. is a Canadian fruit-based snack and beverage manufacturer, which generated sales of approximately $164 million and an adjusted EBITDA of approximately $9 million for the 12-month period ending on September 30^th, 2019. Since it was founded in 1946, Sun-Rype has been producing juices and fruit snacks in Kelowna, British Columbia, in the Okanagan Valley. It also operates two other facilities located in Selah and Wapato, Washington, United States.

Sun-Rype manufactures and sells a variety of ready-to-drink fruit-based juices and drinks under the Sun-Rype brand and fruit-based snacks under the Sun-Rype, Fruit to Go, FruitSource and Good Bites brands. Its customers include grocery stores, club stores, and mass merchandisers, as well as wholesalers and drug stores.

Sun-Rype employs approximately 400 people. For more details about Sun-Rype's products and its community engagement, visit www.sunrype.ca or www.sunrypeusa.com.

About Lassonde Industries Inc.

Lassonde Industries Inc. is a North American leader in the development, manufacture and sale of a wide range of ready-to-drink fruit and vegetable juices and drinks marketed under brands such as Apple & Eve, Everfresh, Fairlee, Fruité, Graves, Oasis, Old Orchard and Rougemont. Lassonde is also one of the two largest producers of store-brand, shelf-stable fruit juices and drinks in the United States and a major producer of cranberry 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 cider-based beverages.

The Company produces superior-quality products through the expertise of approximately 2,200 people working in 15 plants across Canada and the United States. To learn more, visit www.lassonde.com.

Caution Concerning Forward-Looking Statements

In this document and in other documents filed with Canadian regulatory authorities or in other communications, the Company may from time to time make written or oral forward-looking statements within the meaning of applicable securities legislation. Forward-looking statements notably include estimates, expectations, forecasts, and projections of future investment spending, revenues, expenses, earnings, profit, indebtedness, financial position, losses, upcoming projects, business and management strategies, and business growth and expansion. In the context of this document, forward-looking statements are particularly used to discuss preliminary results, the rate of sales growth, and profit attributable to shareholders. The forward-looking statements contained herein are used to help readers better understand Lassonde's financial position and the results of its operations as at the dates presented and may not be appropriate for other purposes. Forward-looking statements can be recognized by such words as "may," "should," "believes," "predicts," "plans," "expects," "intends," "anticipates," "estimates," "projects," "objective," "continues," "proposes," "targets," or "aims" as well as words and expressions of a similar nature and whether they are used in the affirmative or negative or used in the conditional or future tense. Forward-looking statements also include any statements that do not refer to historical facts.

By their very nature, forward-looking statements are based on assumptions and involve inherent risks and uncertainties, both general and specific in nature. It is therefore possible that the forecasts, projections and other statements will not be achieved or will differ significantly from those expressed or implied in such forward-looking statements or could affect the extent to which a particular forecast, projection or other statement materializes. Although Lassonde believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurances that these expectations will prove to be correct.

Readers are cautioned against placing undue reliance on forward-looking statements when making decisions, as the actual results could differ considerably from the opinions, plans, objectives, expectations, forecasts, estimates and intentions expressed in such forward-looking statements due to various significant factors. Such factors include, among others, the economic, industrial, competitive and regulatory environment in which Lassonde operates or factors that are likely to have an impact on its operations, its ability to attract and retain customers, consumers, and qualified staff, the availability and cost of raw materials and transportation, its operating costs, and the price of its finished products in the various markets where it operates.

The Company cautions that the foregoing list of factors is not exhaustive. For additional information about the risks, uncertainties, and assumptions that could cause Lassonde's actual results to differ from its stated expectations, readers may also consult the "Uncertainties and Principal Risk Factors" section of the Company's most recent annual MD&A and the other documents it files from time to time with securities regulators in Canada and available on www.sedar.com. The forward-looking statements contained in this press release reflect the Company's expectations on this date and are subject to change after this date. Lassonde does not undertake to update publicly or to revise these forward-looking statements, whether as a result of new information, future events or otherwise, unless required by applicable legislation or regulation.

SEDAR registration number: 00002099

SOURCE Lassonde Industries Inc.

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