Dive Brief:
- SunOpta Inc., a global organic food company, has announced the details of its underwritten public offering: just over $100 million on more than 16 million shares at a public offering price of about $6 per share.
- Underwriters of the offering can purchase up to an additional $15 million, or about 2.5 million common shares, for 30 days after the pricing of the offering.
- The offering is expected to close on Sept. 30 pending customary closing conditions.
Dive Insight:
"SunOpta said it will use the net proceeds of the offering to fund a portion of the purchase price of the acquisition of Sunrise Holdings, which it agreed to acquire from an investor group led by affiliates of Paine & Partners L.L.C. in late July. If the Sunrise acquisition is not completed, SunOpta said it will use the net proceeds for general corporate purposes," Food Business News reported.
Last month, SunOpta also acquired the assets of Niagara Natural Fruit Snack Company Inc., which is "a growing and innovative manufacturer of healthy non-GMO and organic fruit snacks, enhancing SunOpta's existing healthy snack platform and focus on integrated consumer products. With the acquisition, SunOpta extends its market presence in fruit snacks and importantly will now have manufacturing operations in both the east and west, providing a competitively positioned platform to improve customer service and also generate meaningful operational and logistical synergies," according to a news release.
SunOpta also recently announced the addition of stand-up pouches to several of its facilities, signaling the company's attempts to adapt to a growing packaging trend in the food industry.