SunOpta Sells Frozen Fruit Business

SunOpta is exiting the frozen fruit segment as the company has sold all assets related to the business to Nature’s Touch, which is based in Quebec, Canada.

The transaction valued at $141 million closed on Thursday, October 12. Included in the sale are the primary assets of the frozen fruit business, including facilities located in Edwardsville, Kan., and Jacona, Mexico, along with a quantity of frozen fruit inventory.

“The divestiture of our frozen fruit business is a major milestone in our portfolio optimization efforts and our multi-year transformation to becoming a leading manufacturer of value-add products in plant-based and healthy snack categories,” said Joe Ennen, CEO of SunOpta. “This transaction is significantly accretive to margins, results in a more capital efficient business model, strengthens our balance sheet and ensures we are singularly focused on the most attractive growth opportunities.”

The standalone frozen fruit business generated approximately $263 million of revenue and approximately $15 million of adjusted EBITDA over the 12-month period ending July 1.

According to the company, the net cash proceeds will be used to pay down debt and other liabilities.

The company also announced the appointment of Greg Gaba as chief financial officer effective October 13. He has been with the company for more than six years and most recently served as deputy CFO. Gaba replaces Scott Huckins, who served as CFO and general manager.