October 20, 2022
By Lynda Kiernan-Stone, Global AgInvesting Media
Los Angeles-based private equity firm Pacific Avenue Capital Partners has acquired the sunflower and roasted snacks business of SunOpta in a $16 million deal.
Based in Crookston, Minnesota, this business division is a leading integrated provider of sunflower seeds, chickpeas, and other nutritious snacks. Business-related assets acquired through this transaction include three processing facilities in the upper U.S. Midwest region, hybrid seed development activities, a collaborative program with independent sunflower growers, and extensive relationships with customers in the food ingredients, snack food, and birdseed markets.
Once a focused commodities trader, SunOpta has been reorganizing in earnest since about 2020 to shift its business into plant-based foods and beverages.
The groundwork was being laid out as early as 2016 when the company sold its mineral business to Speyside Equity Fund I to become a pure play food company. Other highlights include the sale of its specialty organic corn and soybean business to Pipeline for $66.5 million in 2019, and the sale of its global ingredients business to Amsterdam Commodities in a deal worth $390 million the following year.
Following this latest divestiture, the company’s Plant-Based Foods and Beverages division will be fully concentrated on offering a lineup of plant-based beverages utilizing oats, almonds, rice, soy, coconut, hemp, and other alternative bases, along with broths, teas, nutritional beverages, and liquid and powder ingredients.
“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, SunOpta.
Since the deal closed on October 11, Pacific Avenue has renamed the business, Sunrich Products, and stated it will maintain the same general manager and employee team.
“We are excited to partner with Pacific Avenue to accelerate the growth of Sunrich’s business by further fulfilling our customers’ needs for quality roasted snack products,” said Kent Johnson, CEO, Sunrich Products.
“Our partnership with outstanding growers who produce quality crops enables Sunrich to reliably meet the needs of our customers. We look forward to further innovating our portfolio of healthy products made from sunflowers and other healthy crops.”
For Pacific Avenue, this carve-out is all about the potential existing in the healthy snack and healthy pet food markets.
“We are excited about the Sunrich investment and the Company’s ability to capitalize on the growing demand for quality farm-to-product healthy foods for both the human and pet markets,” said Chris Sznewajs, founder and managing partner, Pacific Avenue.
“This acquisition demonstrates Pacific Avenue’s ability to successfully execute complex corporate divestitures. 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.”
~ Lynda Kiernan-Stone is editor in chief with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and Agtech Intel News, as well as HighQuest Group’s Unconventional Ag. She can be reached at lkiernan-stone@
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