UPDATE 1-SunOpta to buy sunflower products business for $44 mln

* Says to buy Dahlgren & Co in a cash deal

* Deal to close by end of business day Monday

* Says deal immediately accretive to earnings

Nov 8 (BestGrowthStock) – Canada’s SunOpta Inc (SOY.TO: ) (STKL.O: )
agreed to buy Dahlgren & Company Inc, a processor and supplier
of sunflower seed products, for $44 million in cash to enhance
its core natural and organic foods business.

SunOpta — which also operates SunOpta Food Group and Opta
Minerals Inc (OPM.TO: ) — said the transaction is on a debt-free
basis and includes an earn-out based on pre-determined targets
over the next two years.

Brampton, Ontario-based SunOpta sold its non-core
cellulosic ethanol producing unit to U.S. biofuels company
Mascoma Corp in September, and its Canadian food distribution
assets to United Natural Foods Inc (UNFI.O: ) in May.

Minnesota-based Dahlgren, with annual revenue of about $80
million, processes and supplies confection sunflower seed
products, roasted sunflower and soy nuts to North America,
Europe, Asia and Australia.

SunOpta Sunflower, a division of SunOpta’s grains and foods
group, already sells sunflower products.

The transaction, which is expected to be completed by the
close of business on Monday, will be immediately accretive to
SunOpta’s earnings, the company said.

SunOpta’s shares, which have gained 30 percent in value
since its September deal, closed at C$7.27 on Friday on the
Toronto Stock Exchange.
(Reporting by Arnika Thakur in Bangalore; Editing by
Unnikrishnan Nair)

UPDATE 1-SunOpta to buy sunflower products business for $44 mln