SunOpta to divest flexible re-sealable pouch products business
SunOpta has signed a definitive agreement to sell equipment for producing flexible, re-sealable pouches from its Allentown facility in Pennsylvania, US, to Skjodt-Barrett.
The company previously decided to cease its flexible, re-sealable pouch products business as part of its ongoing portfolio optimisation strategy and value creation plan.
The asset sale, which is worth about $2m, is in conjunction with this strategy.
SunOpta CEO Dave Colo said: “This asset sale and discontinuation of the flexible re-sealable pouch business aligns with our stated portfolio optimisation strategy of exiting product lines where the company is not effectively positioned.
“We anticipate the discontinuation of contract manufacturing pouched baby food products to be profit neutral and allow for the redeployment of capital and resources for investment in more profitable segments of our business where we have enhanced strategic positioning.”
Last year, flexible re-sealable pouch products generated $46m revenue for the company and $10m in the first quarter of this year.
After the completion of this sale, SunOpta will continue to produce aseptic beverages from its Allentown facility.
The company expects to end the sale during the last quarter of 2017.
SunOpta produces organic, non-genetically modified and specialty foods.
The company is also involved in sourcing, processing and packaging organic and non-GMO food products.