Lassonde Industries, one of North America's leading marketers and
manufacturers of fruit juices and drinks, acquires a national fruit
juice and drink brand in the United States.
Lassonde Industries to enter the branded juice business in the U.S. with
an established platform for continued growth and new product
The acquisition will enable Lassonde Industries to strengthen its U.S.
presence by leveraging synergies within its existing U.S. business.
ROUGEMONT, QC, July 4, 2014 /CNW Telbec/ - Lassonde Industries Inc.
(TSX: LAS.A) ("Lassonde") has entered into a definitive agreement,
through one of its U.S. subsidiaries, with US Juice Partners, LLC to
acquire privately owned Apple & Eve, LLC of Port Washington, New York,
for a total cash consideration of US$150.0 million payable at closing,
subject to adjustments for working capital and other items.
Upon closing of the transaction, expected to occur in July 2014,
Lassonde will have a 90% equity interest in Apple & Eve and its
complete line of juice and drink brands distributed widely across the
United States. Through their existing equity interest in the acquiring
U.S. subsidiary and a capital contribution to the acquisition
financing, members of the Lassonde family will own the remaining 10%
"Our entry into the branded juice business in the United States
represents another major milestone in our North American strategy,"
said Pierre-Paul Lassonde, Chairman of the Board and Chief Executive
Officer of Lassonde Industries Inc. "It is aligned with our strategy of
consistent, measured growth and enhances our overall position in the
industry by providing an excellent platform for the future."
The acquisition will be financed as follows: US$75.0 million under the
term credit facility of a Lassonde U.S. subsidiary, US$67.5 million
from a combination of cash, cash equivalents on hand and Lassonde's
Canadian operating credit facility, with the remaining US$7.5 million
provided by equity investment of members of the Lassonde family.
Financing fees related thereto are estimated at US$2.0 million while
other fees related to the transaction are estimated at US$3.5 million.
Closing of the transaction is subject to customary terms and
conditions, including receipt of regulatory approvals.
Benefits of the Transaction
The acquisition of Apple& Eve is expected to provide Lassonde with:
increased critical mass to support customers throughout the U.S. and
benefits from combined logistics, distribution, purchasing and other
economies of scale;
a more diversified and balanced product portfolio in the U.S. and an
entry point in national brand products in the U.S. market; and
growth opportunities in the U.S. national brand juice and drink market
for Lassonde's existing products.
"We are pleased to add one of America's best known juice brands to our
portfolio," said Jean Gattuso, President and Chief Operating Officer of
Lassonde Industries Inc. "Like Lassonde in Canada, Apple & Eve is
synonymous with innovative products in the health and wellness segment
in the U.S. We are confident in our ability to continue to grow the
"I am so proud of what we have built at Apple & Eve over the last 40
years, and as CEO I look forward to entering this new exciting chapter
together. By joining Lassonde, we will remain highly focused on
creating innovative, on-trend products under the iconic Apple & Eve
brand and the other strong brands in our portfolio," said Gordon Crane,
Founder, President and Chief Executive Officer of Apple & Eve.
Apple & Eve
Apple & Eve is the leading independent branded juice company in the
U.S., with total annualized net sales of US$190.0 million and a
trailing 12-month adjusted EBITDA of US$15.2 million.
Founded by the Crane family in 1975, and headquartered in
Port Washington, NY, the company focuses on healthy and innovative
juice products. The Company offers more than one hundred different
juice products sold under its iconic flagship brand name, Apple & Eve,
and includes a portfolio of sub brands including Organics, Fruitables,
Quenchers, Waterfruits and Sesame Street. Additionally, it owns and
markets juices under Northland, Seneca and The Switch brands. Apple &
Eve products are sold in supermarkets, mass merchandisers, warehouse
clubs, natural food stores, schools and convenience stores across the
country. For more information, visit www.appleandeve.com.
Lassonde Industries Inc.
Lassonde Industries Inc. is a North American leader in the development,
manufacture and sale of a wide range of fruit and vegetable juices and
drinks marketed under brands such as Everfresh, Fairlee, Flavür,
Fruité, Graves, Oasis and Rougemont.
Lassonde is also the second largest producer of store brand
ready-to-drink fruit juices and drinks in the United States and a major
producer of cranberry sauces.
Lassonde also develops, manufactures and markets specialty food products
under brands such as Antico and Canton. The Company imports and markets
selected wines from various countries and manufactures apple ciders and
The Company produces superior quality products through the efforts of
some 2,000 people working in 14 plants across Canada and the United
States. To learn more, visit www.lassonde.com.
SEDAR registration number: 00002099
Caution Concerning Forward-Looking Statements
This press release contains forward-looking statements that are based on
certain assumptions. These forward-looking statements are subject to a
number of risks and uncertainties that could cause actual results or
events to differ materially from current expectations. Additional
factors are discussed in materials filed from time to time with the
securities regulatory authorities in Canada. Lassonde Industries Inc.
disclaims any intention or obligation to update or revise any
forward-looking statements except as required by law.
SOURCE: Lassonde Industries Inc.
For further information:
Guy Blanchette, FCPA, CA
Executive Vice-President and Chief Financial Officer
Lassonde Industries Inc.
450-469-4926, extension 10782
Lassonde Industries Inc.
450-469-4926, extension 10265