Family selling juice company for $146M
A Canadian company is acquiring a family owned juice business in the region.
Rougemont, Quebec-based Lassonde Industries said last month it signed an agreement to acquire Sparta-based Old Orchard Brands for $146 million, subject to working capital and other adjustments.
The transaction is expected to close this month.
An additional $10 million might be payable over the next two years, subject to specified financial milestones.
Lassonde also agreed to purchase Old Orchard Brands’ property — comprised of the plant and land at 1991 12 Mile Rd. NW in Sparta — for $4 million, subject to satisfaction of certain regulatory conditions. If the conditions are not met, the property will be rented under a long-term lease.
“I am pleased that we have reached an agreement with Lassonde,” said Mark Saur, who co-founded Old Orchard Brands with his wife, Lisa Saur, and serves as its president and CEO.
“It’s the perfect combination of two companies with a long history of success in the juice industry. I am proud of what we have built over the past 30 years and could not think of a better owner of our brand and business than Lassonde.
“This is a perfect match that closes an exciting chapter for our family and employees and opens an even more exciting one.”
Old Orchard Brands declined to comment for this story on whether any Old Orchard employees or executives would be affected by the acquisition.
Lassonde was not immediately available to comment.
New York-based Sawaya Partners was financial advisor to Old Orchard Brands for this transaction.
Reason for acquisition
Pierre-Paul Lassonde, chair and CEO of Lassonde, said acquiring Old Orchard Brands will “further strengthen” his company’s presence in the U.S.
Jean Gattuso, president and COO of Lassonde, said Old Orchard complements its existing brands and provides access to a production line for frozen concentrated juices and other products.
They said the acquisition will also improve Lassonde’s manufacturing footprint in the Midwest.
Old Orchard Brands
Founded in 1985 by Mark Saur and Lisa Saur, Old Orchard Brands is a fruit juice and beverage company.
Its products include 100-percent juice, 100-percent juice blends, reduced-sugar juice cocktails, seasonal lemonades and flavored teas.
Its 2017 sales revenue was $103.3 million. The company has about 100 employees.
Lassonde Industries develops, manufactures and sells ready-to-drink fruit and vegetable juices.
It markets the juices under brands such as Apple & Eve, Everfresh, Fairlee, Fruité, Graves, Oasis and Rougemont.
Lassonde also develops, manufactures and markets specialty food products under brands such as Antico and Canton.
The company imports and markets wines from various countries and manufactures apple ciders and cider-based beverages.
Lassonde employs about 2,100 people in 14 plants across Canada and the U.S.
Its 2017 revenue was about $1.52 billion.