Lassonde Industries, Inc., a Rougemont, Que., developer and manufacturer of fruit and vegetable juices, has agreed to acquire Old Orchard Brands, LLC, a family-owned juice and beverage company based in Sparta, Mich., for $146 million in cash. Lassonde also has agreed to purchase the company's property, which includes land and the manufacturing plant, for $4 million. The transaction is expected to close in May. Via additional consideration, a further amount of up to $10 million may be payable over the next two years subject to specified financial milestones.
Lassonde develops and produces a wide range of ready-to-drink fruit and vegetable juices and drinks under brands such as Apple & Eve, Everfresh, Fairlee, Fruité, Graves, Oasis and Rougemont. The company is one of the two largest producers of store brand shelf-stable fruit juices and drinks in the U.S., and is a major producer of cranberry sauces and markets specialty food products under brands such as Antico and Canton.
Founded in 1985, Old Orchard is a leading brand of shelf-stable fruit juices across the central U.S. and the nation's second largest brand in frozen juice concentrates, with sales of $103.3 million, and an adjusted EBITDA of $15.8 million for its 2017 fiscal year.
"Adding the Old Orchard brand to our product portfolio will further strengthen our presence in the U.S. national brands sector," said Pierre-Paul Lassonde, board chairman and CEO of Lassonde Industries. "This transaction fits well within our sustained growth strategy and improves our overall position in the United States."
"Old Orchard has a good reputation in the United States, and enjoys solid brand loyalty, especially in the Central United States," added Jean Gattuso, president and COO. "The Old Orchard brand complements our existing brands and, what's more, the transaction will add a line of frozen juices to our product offering, which introduces interesting growth opportunities."
The acquisition of Old Orchard Brands will improve Lassonde's manufacturing footprint in the Midwest and further strengthen its presence in the U.S. national juice sector. It will also provide access to a production line for frozen concentrated products.