Tuesday, August 02, 2016 1:01:30 PM
By John Tilak and Lauren Hirsch
July 25 (Reuters) - Canadian organic food company SunOpta Inc, already
under pressure from U.S. hedge fund Tourbillon Capital Partners LP, is
being prodded by a second activist shareholder to explore the sale of
all or part of the company, according to sources familiar with the
matter.
Canadian hedge fund West Face Capital, which pushed SNC-Lavalin to sell
its AltaLink business for about C$3.1 billion in 2014, also wants
SunOpta to look at board or management changes if sales don't
materialize, said the sources who spoke on condition of anonymity.
West Face's move comes as SunOpta, whose brands include Nature's Finest
and Sunrich Naturals, has received interest from private equity firms,
said two sources familiar with the situation.
While some of Toronto-based West Face's demands are similar to
Tourbillon's, the two hedge funds are not acting in concert, the sources
said.
West Face, SunOpta's third biggest shareholder with a more than 8
percent stake, began the push about a year ago but has kept it private,
one source said. Tourbillon, SunOpta's largest stakeholder, went public
with a May 27 letter to the board and chief executive officer.
SunOpta and West Face declined to comment.
Investors have been disappointed with SunOpta's share price, which is
down nearly 48 percent over the past year. Some shareholders are
concerned about the debt level, the integration of acquisitions and
SunOpta's sluggish performance in the high-growth organic foods market,
the sources said.
Last month, SunOpta's board hired investment bank Rothschild Inc and law
firm Davies Ward Phillips & Vineberg LLP to advise on strategic options
and said it was in talks with its biggest shareholders.
SunOpta's debt jumped to $482.8 million in 2015 from $83 million a year
earlier after the acquisitions of Citrusource, Niagara Natural and
Sunrise Growers.
A sale at less than C$8 per share is unlikely to be acceptable to some
of the major shareholders, one source said, adding that an asset sale
was more likely in the near term.
The stock was down 2.1 percent at C$6.54 on Monday.
SunOpta set ambitious goals in April for gross margin and sales,
including raising its overall gross margin to between 14 percent to 16
percent within three to five years from the current 11 percent, said
Eric Gottlieb, an analyst at D.A. Davidson & Co.
"They've made all these promises throughout the years, and they haven't
come through," he said. Now the shareholders' approach is, 'let me see
you do it,'" he added.
A strategic buyer, such as grain handler Archer Daniels Midland Co, the
food processor and commodities trader, or Bunge Ltd, the agribusiness
group, may be interested in buying SunOpta for its ingredient sourcing
segment and then sell its consumer products division, Gottlieb said.
ADM declined to comment. Bunge could not be reached immediately for
comment.
(Reporting by John Tilak in Toronto, Rod Nickel in Winnipeg, Lauren
Hirsch and Michael Flaherty in New York; Editing by Jeffrey Benkoe)
Best regards,
Recent STKL News
- Form 8-K - Current report • Edgar (US Regulatory) • 09/18/2024 01:02:50 PM
- SunOpta Inc. Welcomes David (Dave) Lemmon to Board of Directors • Business Wire • 09/18/2024 12:00:00 PM
- SOWN Introduces Coffee’s Perfect Match with Oat Cold Foaming Cream for Elevated At-Home Barista Experience • Business Wire • 09/16/2024 01:07:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 08/29/2024 08:16:00 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 08/28/2024 08:39:15 PM
- Form 10-Q - Quarterly report [Sections 13 or 15(d)] • Edgar (US Regulatory) • 08/07/2024 09:10:03 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 08/07/2024 09:07:54 PM
- SunOpta Announces Second Quarter Fiscal 2024 Financial Results • Business Wire • 08/07/2024 09:00:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 07/29/2024 09:05:04 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 07/29/2024 09:04:40 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 07/29/2024 09:04:23 PM
- SunOpta Inc. Schedules Second Quarter 2024 Financial Results Release and Conference Call • Business Wire • 07/17/2024 12:00:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 07/12/2024 10:55:16 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 07/12/2024 10:54:15 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 07/12/2024 10:52:25 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 07/12/2024 10:51:13 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 07/12/2024 10:50:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 07/12/2024 10:48:52 PM
- SunOpta Announces SOWN® Organic Oat Creamers Available at Lunds & Byerlys • Business Wire • 07/11/2024 12:00:00 PM
- SunOpta Invests $26 Million To Expand California Plant-Based Beverage Processing Facility • Business Wire • 06/26/2024 12:00:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/01/2024 12:08:25 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/01/2024 12:02:39 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/01/2024 12:01:28 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/31/2024 11:54:14 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/31/2024 11:46:17 PM
VHAI - Vocodia Partners with Leading Political Super PACs to Revolutionize Fundraising Efforts • VHAI • Sep 19, 2024 11:48 AM
Dear Cashmere Group Holding Co. AKA Swifty Global Signs Binding Letter of Intent to be Acquired by Signing Day Sports • DRCR • Sep 19, 2024 10:26 AM
HealthLynked Launches Virtual Urgent Care Through Partnership with Lyric Health. • HLYK • Sep 19, 2024 8:00 AM
Element79 Gold Corp. Appoints Kevin Arias as Advisor to the Board of Directors, Strengthening Strategic Leadership • ELMGF • Sep 18, 2024 10:29 AM
Mawson Finland Limited Further Expands the Known Mineralized Zones at Rajapalot: Palokas step-out drills 7 metres @ 9.1 g/t gold & 706 ppm cobalt • MFL • Sep 17, 2024 9:02 AM
PickleJar Announces Integration With OptCulture to Deliver Holistic Fan Experiences at Venue Point of Sale • PKLE • Sep 17, 2024 8:00 AM