SunOpta has announced its second acquisition in a fortnight, striking a deal to buy Canadian fruit snacks firm Niagara Natural.
The Ontario-based company is a private-label supplier and co-packer of fruit snacks. SunOpta said the deal builds on its existing fruit snacks business and means it now has manufacturing facilities in the east and west of Canada.
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Rik Jacobs, SunOpta's president and COO, said the transaction gives the group "a growing business that enhances our leadership position in this on-trend category".
Jacobs, set to become SunOpta's CEO in October, added: "Niagara Natural is a strong strategic fit within our core vertically integrated consumer products strategy, aligning well with our focus on healthy and convenient snacking."
The deal is valued at around US$6.7m on a debt-free basis, plus "potential future payments based on specific performance targets", SunOpta said.
Steve Bromley, who is stepping down as SunOpta CEO after eight years at the helm and becoming the company's vice chair, said the company believes there are opportunities to innovate in healthy and organic packaged fruit snacks, in fruit-based ingredients and new products "focused on mainstream snacking".
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By GlobalDataHe said: "Our ongoing investment in new product development plays a key role in our growth strategy, and the fruit snack category is a great example of a category where we intend to provide innovative products for existing and new customers."
Natural Niagara, set up in 2009, is expected to generate around C$10m of sales in 2015. Founder John Boot said: "Joining SunOpta allows us to leverage their global platform and combine our innovation pipelines, which should enable us to reach new customers and offer existing customers enhanced capabilities."
The transaction, revealed today (12 August), follows SunOpta's move to acquire frozen fruit business Sunrise Growers for US$450m, which was announced on 31 July.
