Canada’s SunOpta has offloaded its specialty and organic soy and corn business to Pipeline Foods for $66.5 million.
As part of the deal, the companies have entered into a multi-year supply agreement for certain ingredients used in SunOpta’s consumer products business.
The specialty and organic soy and corn business formed part of SunOpta North America-based raw material sourcing and supply segment and includes five facilities: four located in Minnesota and one in Iowa.
SunOpta said it will continue to operate its other North America-based sourcing and supply operations, consisting of sunflower and roasting operations, as well as its Europe-based international sourcing and supply platform, known as Tradin Organic, which were not part of the sale.
John Ruelle, senior vice president of raw material sourcing and supply at SunOpta, said: “Our specialty and organic soy and corn business has a long history of supplying high-quality specialty, non-GMO and organic ingredients to the food industry.
“I want to thank all of our employees who are transitioning to Pipeline Foods for their hard work and dedication. Each employee has had a meaningful impact and contributed to the company’s value creation plan during their time at SunOpta. We believe Pipeline Foods is well positioned in this space, which should serve the industry well and be positive for our transitioning employees.”
Pipeline Foods chief executive Eric Jackson added: “We are excited by this incredible opportunity to grow our business and expand the accessibility of organic and specialty grains in the US. With this move, we are merging the newest team in the sustainable agriculture supply chain business with the most tenured and respected team in the business, and creating something even better.
“With a focused passion, we seek to merge the best parts of each organisation’s culture, practices, experience, and relationships to build a world-class business that can deliver value to our farmer-partners as well as our customers.”
Headquartered in Minnesota, Pipeline Foods aims to accelerate the availability and reliability of non-GMO and organic food.
© FoodBev Media Ltd 2019