Rougemont, Quebec, Nov. 14 - Lassonde Industries Inc. (LAS.A-TSX) today announced that its subsidiary Lassonde Specialties Inc., a manufacturer of specialty food products best known under the CANTON trademark, has entered into an asset purchase agreement to purchase substantially all of the assets of Mondiv Food Products Inc. The assets to be purchased include a production plant in Boisbriand, Quebec, the ANTICO trademark, and Mondiv's accounts receivable and inventories.
The purchase price of approximately $18.9 million will be financed in part with cash on hand and in part by drawing under Lassonde's committed credit facilities with lenders. Closing is to be completed by November 30, 2007, and is subject to conditions usual and customary for transactions of this type.
Mondiv Food Products Inc. is a leading private label manufacturer of long-shelf-life specialty food products sold primarily to U.S. and Canadian food chains and distributors. The primarily glass-jar products are processed at the Boisbriand plant and include mainly pasta and other specialty sauces, bruschetta, tapenades, and artichoke antipastos. The state-of-the-art plant is USDA compliant, HACCP approved, and certified organic by the Quality Assurance Institute (QAI). Mondiv has net sales of $25 million, to U.S. and Canadian customers, and employs approximately 60 people.
"This acquisition should enable Lassonde Specialties Inc. to diversify its current product line and packaging offering, add to its production capacity, develop new products, and extend its market to North America as a whole," stated Jean Messier, President and Chief Executive Officer of Lassonde Specialties Inc. The purchased business will maintain its mission as a private-label manufacturer, and continue to operate under the Mondiv Food Products name as a division of Lassonde Specialties Inc.