Lassonde Industries completes the acquisition of U.S.-Based Old Orchard Brands

ROUGEMONT, QC, May 31, 2018 /CNW Telbec/ - Lassonde Industries Inc. (TSX: LAS.A) ("Lassonde") completed the previously announced acquisition of Old Orchard Brands, LLC, a fruit juice and beverage manufacturing company based in Sparta, Michigan, for a total cash consideration of US$148.9 million. This amount includes US$2.9 million in preliminary working capital adjustments and is subject to potential additional working capital and other adjustments. An additional consideration of up to US$10.0 million may be payable over the next two years subject to specified financial milestones based on adjusted EBITDA. In addition, Lassonde has agreed to purchase the property, comprised of the plant and land, for US$4.0 million subject to satisfaction of certain regulatory conditions. If the conditions are not met, this property will be rented under a long-term lease.

Financing of the transaction

The acquisition was financed by the addition of a US$146.0 million portion (maturing on May 31, 2022) to the existing term loan of the Company's U.S. subsidiary and also by drawing on that subsidiary's existing revolving credit facility. The related financing costs are estimated at US$2.7 million. The other transaction-related costs are estimated at US$1.4 million.

About Old Orchard Brands

Old Orchard Brands, LLC is a family-owned and operated fruit juice and beverage company headquartered in Sparta, Michigan with sales of US$103.3 million and an adjusted EBITDA of US$15.8 million for its 2017 fiscal year.

Old Orchard is a leading brand in the shelf-stable fruit juice category across the Central United States and the nation's second largest brand in frozen juice concentrates.

Founded in 1985 by Mark Saur, Old Orchard employs nearly 100 people who are dedicated to crafting the highest quality products. The Old Orchard product portfolio provides consumers with an innovative mix of nearly 100 different varieties, including: 100% juice, 100% juice blends, reduced-sugar juice cocktails, seasonal lemonades and flavored teas. To learn more, visit www.oldorchard.com.

Sawaya Partners served as exclusive financial advisor to Old Orchard Brands, LLC.

About Lassonde

Lassonde Industries Inc. is a North American leader in the development, manufacture and sale of a wide range of ready-to-drink fruit and vegetable juices and drinks marketed under brands such as Apple & Eve, Everfresh, Fairlee, Fruité, Graves, Oasis and Rougemont.

Lassonde is also one of the two largest producers of store brand shelf-stable fruit juices and drinks in the United States and a major producer of cranberry sauces.

Lassonde also develops, manufactures and markets specialty food products under brands such as Antico and Canton. The Company imports and markets selected wines from various countries and manufactures apple ciders and cider-based beverages.

The Company produces superior quality products through the expertise of approximately 2,100 people working in 14 plants across Canada and the United States. To learn more, visit www.lassonde.com.

Caution Concerning Forward-Looking Statements 

This press release contains forward-looking statements that are based on certain assumptions. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. Additional factors are discussed in materials filed from time to time with the securities regulatory authorities in Canada. Lassonde Industries Inc. disclaims any intention or obligation to update or revise any forward-looking statements except as required by law.

SOURCE Lassonde Industries Inc.