SunOpta is set to sell food distribution assets in Canada to US distribution giant United Natural Foods in a deal worth C$68m.

The assets form part of the SunOpta Distribution Group, which generated US$237.3m in revenues last year. The units set to be offloaded turned over US$169.6m in 2009.

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Under the deal, SunOpta will keep the division’s natural health products distribution and manufacturing assets.

“Divesting the food distribution assets is an important milestone in our strategy to focus on our core food manufacturing platform, strengthening our balance sheet and positioning the Company for the future,” said SunOpta president and CEO Steve Bromley.

UNFI president and CEO Steve Spinner said the US group was entering the “dynamic” Canadian market.

“This acquisition is the latest step in our strategy to grow our organic and specialty foods business and represents an opportunity for UNFI to diversify its operations by entering into the Canadian market,” Spinner said.

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