The leading distributor of natural, organic and specialty food in the United States has bought Canada’s largest distributor of organic, natural, kosher and specialty food.United Natural Foods Inc. acquired the Canadian food distribution assets of SunOpta Distribution Group, a division of SunOpta Inc., on May 11 for $68 million. The transaction is expected to close by early June.“This acquisition is the latest step in our strategy to grow our organic and specialty foods business and represents an opportunity for UNFI to diversify its operations by entering into the Canadian market,” said Steve Spinner, president of UNFI.SunOpta Inc. is retaining the natural health products distribution and manufacturing assets of the SunOpta Distribution Group. Those assets accounted for 29 percent of the business unit’s 2009 sales revenues of $237.3 million.“Divesting the food distribution assets is an important milestone in our strategy to focus on our core food manufacturing platform, strengthening our balance sheet and positioning the company for the future,” said Steve Bromley, president of SunOpta.Employees involved in the Canadian food distribution operations of SunOpta Distribution Group will be offered employment with UNFI. The company will continue to have its headquarters in Toronto and will operate as UNFI Canada Inc.“This transaction offers us additional resources to expand our product offerings and serve more customers with greater efficiencies, utilizing items such as UNFI’s substantial purchasing power and sophisticated inter-regional logistics system,” said SunOpta Distribution Group president Roger Eacock.
Read Also
U.S. loses out on sales of soybean to China
U.S. soybean exporters risk missing out on billions of dollars worth of sales to China this year as trade talks drag on and buyers in the top oilseed importer lock in cargoes from Brazil.
