SunOpta owns approximately 66.4% of Opta’s outstanding common shares and approximately 64% on a fully diluted basis.
Babco is a profitable industrial processor and supplier of petroleum coke, synthetic slag, ladle sand and crushed graphite. This acquisition complements Opta’s existing product portfolio and provides for additional product line offerings to new and existing customers in the region.
The Babco facility has capacity for further growth and expansion and is strategically located in proximity to its key vendors and customers.
As consideration for the acquisition of the Babco shares, Opta paid approximately $17.6m in cash on closing, subject to customary post-closing purchase price adjustments, and is obligated to pay up to an additional $1.3m in cash pursuant to a contingent five year earn-out if the acquired business achieves certain future EBITDA targets. The acquisition is expected to be immediately accretive to both Opta’s and SunOpta’s earnings.
David Kruse, president and CEO of Opta, said: “We are very pleased to have completed this transaction. Babco is a great strategic fit and will be easily integrated with our other mill and foundry businesses, further expanding our geographic reach and customers serviced within Canada and the United States. We welcome the employees of Babco to the Opta Minerals team.”
Source: Sunopta
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