US organic and non-GM food supplier Pipeline Foods LLC has acquired the organic and non-GM soya and corn business of Canada’s SunOpta Inc for US$66.5M.
“The acquisition complements Pipeline Foods’ existing footprint in the Canadian Prairies, North Dakota, southwest Iowa, Missouri and Argentina by adding four facilities in Minnesota and one in northeast Iowa, bringing our total operational footprint to 12 facilities,” Pipeline Foods said on 26 February. “This includes eight grain elevators, one dry corn mill, one expeller-pressed crush plant, and two grain processing/packaging facilities.”
Pipeline Foods chief executive Eric Jackson said the deal was a critical next step in the company’s growth.
“We laid out an ambitious goal when we entered the market in 2017 to dramatically increase the amount of organic and non-GM grain grown in the USA,” he said. “The acquisition will add new capabilities and products to the existing Pipeline Foods portfolio.”
The company it would now be able to offer food-grade organic and non-GM corn and soyabean whole and milled ingredients, as well as complementary feed ingredients, in addition to its current portfolio of food-grade organic small and ancient whole grains, ingredients and feed ingredients.
As part of the transaction,which closed on 22 February, Pipeline and SunOpta have entered into a multi-year supply agreement for certain ingredients used in SunOpta’s consumer products business.
SunOpta sources, processes and packs non-GM and organic raw materials from over 60 countries, including soyabean, corn, sunflower, coconut and cocoa products.
SunOpta said it would continue to operate its other North American-based sourcing and supply operations, consisting of sunflower and roasting operations, as well as its European-based international sourcing and supply platform, known as Tradin Organic, which were not part of the sale.