Pacific Avenue acquires SunOpta’s sunflower and roasted snack business

Los Angeles-based private investment firm, Pacific Avenue Capital Partners, has acquired SunOpta’s sunflower and roasted snack division for $16 million, subject to certain post-closing adjustments. 

Based in Minnesota, the business is an integrated provider of farm-to-product sunflower seeds, chickpeas and other roasted snacks. It has become Sunrich Products under Pacific Avenue’s ownership.

The deal encompasses three processing facilities, hybrid seed development activities and a programme with independent sunflower growers.

“This divestiture of a non-core business represents further progress against our strategic imperative of portfolio transformation, focusing on high-growth, high-return opportunities that are differentiated and leverage the competitive strengths of our unique model,” said Joe Ennen, CEO of SunOpta.

The business’s general manager, Kent Johnson, will be appointed as CEO and joined by the rest of the previous leadership team and employee base.

“We are excited about the Sunrich investment and the company’s ability to capitalise on the growing demand for quality farm-to-product healthy foods,” said Chris Sznewajs, founder and managing partner of Pacific Avenue. “We are excited to partner with the Sunrich leadership team and look forward to investing to grow the business and ensuring we meet the needs of our customers.”

Johnson added: “We look forward to further innovating our portfolio of healthy products made from sunflower and other healthy crops”.

SunOpta expects to record an estimated after-tax loss on the sale of the sunflower business of approximately $16 million, which will be included in its Q3 results.