SunOpta divests natural products distribution business for US$14.7m
Purity is said to be the largest stand-alone distributor of dietary supplements, vitamins, natural body care and earth friendly household goods throughout Canada. The company also manufactures a number of natural health care products.
Purity has annual revenues of approximately CDN $60 million and contributed positively to SunOpta's first quarter 2012 earnings.
Under the terms of the agreement, Matthew James, the existing President of Purity, will continue to lead the business under its new ownership group. All of the employees currently involved directly with the operations will be offered employment with Banyan.
Strategic
Steve Bromley, President and Chief Executive Officer of SunOpta, said: "As part of our strategy to focus on our core integrated natural and organic foods sourcing and processing platform, we divested of our food distribution assets in mid-2010, and the divestiture of our natural health products assets and operations will complete our exit from the distribution business.
“This transaction further simplifies and focuses our business model while strengthening our balance sheet and positioning our Company for future growth opportunities.
“We believe Banyan will be a great owner for the business being they are Canadian based and are committed to continued development of the national natural health products distribution platform they have acquired."
