SunOpta gets $85m investment

17 Oct 2016

SunOpta has entered into an agreement with Oaktree Capital Management that has seen Oaktree invest $85 million in SunOpta which will be used to reduce debt and to increase financial flexibility.

SunOpta gets $85m investment

SunOpta has entered into an agreement with Oaktree Capital Management that has seen Oaktree invest $85 million in SunOpta which will be used to reduce debt and to increase financial flexibility.

"After concluding a comprehensive review of strategic and financial alternatives, we are excited to have a partner in Oaktree that truly appreciates SunOpta's unique position in the market and the potential value that can be created for all our shareholders through performance improvement and accelerated growth," said Alan Murray, Chairman of the Board of SunOpta. "Given Oaktree's deep industry knowledge and operational expertise, we believe they are the ideal partner for SunOpta as we seek to strengthen the company's operations in a way that can reduce operational volatility and realize sustainable growth and value creation. We believe this strategic option provides the highest risk adjusted return from the many options available and evaluated by the Board."

"With its strong and diverse portfolio of products and having recently undergone a period of significant investment in the business, we believe SunOpta has a substantial opportunity for growth in the rapidly expanding market for healthy and organic foods," said Matt Wilson, Managing Director and Co-Portfolio Manager of Oaktree. "SunOpta is a natural fit for Oaktree given our experience in the consumer and food industries, and we see a significant opportunity to provide strategic, operational and financial support that will accelerate the Company's value-enhancing initiatives and position it for long-term success."