Canada's SunOpta Acquires Bulgaria's Organic Land Corp
Canada-based natural and organic food group SunOpta announced it has acquired the Bulgarian grain handling and processing facility of Organic Land Corp, based in Silistra.
The price of the deal is EUR 3.2 M, inclusive of debt, and is subject to normal closing adjustments.
The facility so far was a strategic supplier for SunOpta, producing value-added sunflower kernel, oil and related by-products.
The company said the acquisition will further expand its global sourcing platform and value-added ingredient capabilities.
The facility, operating as the Organic Land Corp, was acquired by The Organic Corp, a wholly-owned subsidiary of SunOpta.
Steve Bromley, CEO of SunOpta said the deal is consistent with its strategy of becoming a pure play natural and organic foods company.
"The acquisition of OLC expands our value-added processing capabilities and increases our presence in a key global supply area, while at the same time leveraging our integrated processing platform."
Silistra is located in north east Bulgaria, close to the Black Sea and the Danube River Delta. Located nearby in Romania is a sizable agricultural area that is protected and chemical free, with many growers producing organic products including sunflower, flax seed, corn, barley and soy beans.
The company said it intends to expand its presence in this region across these key product categories and will also expand the facility by adding additional storage and processing capabilities to maximize supply sources for value-added processing.