SunOpta Inc. (NASDAQ:STKL; TSX:SOY) has completed the acquisition of all of the outstanding shares of Hess Food Group LLC of Chicago, Illinois. Hess is a privately-owned, profitable supplier of fruits and vegetables with $4 million in revenues, focused primarily on the quick-service and casual restaurant industry. Hess’s business model focuses on providing its customers with supply chain expertise, from initial product development, to sourcing experience, expertise and flexibility, and inventory management. Hess manages over fifty million pounds of raw and processed fruits and vegetables for its customers, sourced from qualified processors, including SunOpta’s processing facilities. Products are sourced according to customer’s quality specifications and precise formulations.
The combination of Hess and the SunOpta Fruit Group will strengthen SunOpta’s position as a leader in the quick-service and casual restaurant industry, complementing SunOpta’s strengths in the private label retail and industrial markets.
In addition, SunOpta’s global supply sourcing capabilities are expected to generate significant benefits to Hess’s customers via year-round global supply risk management, consistency of supply and cost efficiencies. The combination of Hess’s product development experience and SunOpta’s research and development expertise is also anticipated to generate significant future opportunities as customers benefit from greater resources in product development and innovation.
Hess will continue to operate independently and maintain its long standing commitment to its customers.
Sergio Varela, President of the SunOpta Fruit Group stated, “we have worked with the Hess Food Group for nearly ten years on various projects and are currently working on a number of major product development projects to bring exciting and market innovative products to our customers. The combination of our efforts will strengthen the value proposition to both SunOpta’s and Hess’s customers.”
About SunOpta Inc.
SunOpta Inc. is an operator of high-growth ethical businesses, focusing on integrated business models in the natural and organic food markets. The Company has three business units: the SunOpta Food Group, which specializes in sourcing, processing and distribution of natural and organic food products integrated from seed through packaged products; the Opta Minerals Group, a producer, distributor, and recycler of environmentally friendly industrial materials; and the SunOpta BioProcess Group which engineers and markets proprietary steam explosion technology systems for the pulp, bio-fuel and food processing industries.
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