SunOpta Inc. Announces Exit from Nutrition Bar Operations
TORONTO– SunOpta Inc. (Nasdaq:STKL) (TSX:SOY), a leading global company focused on organic, non-genetically modified and specialty foods, announced today that it intends to exit its nutrition bar product lines and operations in Carson City, NV. The cessation of operations is part of the Company’s ongoing portfolio optimization strategy and Value Creation Plan.
“The planned discontinuation of our nutrition bar operations reflects our continued efforts to optimize our portfolio to focus on product lines where the Company is effectively positioned to generate long-term profitable returns,” said Dave Colo, CEO of SunOpta. “The decision to cease operations at Carson City is accretive to EBITDA and allows us to redeploy both our financial and human resources towards more profitable segments of our business where we have enhanced strategic positioning.”
Nutrition bars accounted for $13 million of SunOpta’s revenue in fiscal 2016, and $11 million of revenue during the first half of 2017, and were reported as part of the healthy snacks platform within the consumer products segment. The discontinuation of the bar product lines is expected to be positive to EBITDA in future periods. The Company expects to incur charges of approximately $8.0 million to $9.5 million relating to the facility closure, including approximately $5.0 million to $6.0 million of non-cash charges for asset write-downs, and approximately $3.0 million to $3.5 million of cash expenditures for severance and other facility closure costs. The cash charges are expected to be largely offset by the recovery of working capital after the full wind-down of operations. The non-cash and cash charges are expected to be recognized during the third and fourth quarters of fiscal 2017. The Company is working with its nutrition bar customers to expedite the exit from these operations and is targeting completion by the end of fiscal 2017.
“I want to thank all of our employees associated with our Carson City operations for their hard work and dedication,” Colo said. “Each employee has contributed to our goal of bringing well-being to life in their own way and has had a meaningful impact at SunOpta.”
About SunOpta Inc.
SunOpta Inc. is a leading global company focused on organic, non-genetically modified (“non-GMO”) and specialty foods. SunOpta specializes in the sourcing, processing and packaging of organic and non-GMO food products, integrated from seed through packaged products; with a focus on strategic vertically integrated business models. SunOpta’s organic and non-GMO food operations revolve around value-added grain, seed, fruit and vegetable based product offerings, supported by a global sourcing and supply infrastructure.
