SunOpta deepens South American commitment
Mar 28, 2007 10:00 AM
SunOpta Incís Fruit Group has expanded strategic relationships in Argentina and Chile and has entered into agreements to increase supply of fruit products from these regions.
The company entered into a five-year supply agreement with Babyís Best Infant Food Ingredients SA, a producer of organic and natural purees and concentrates in Mendoza, Argentina. Under terms of the agreement, SunOpta will provide a line of credit to enable Babyís Best to acquire a 45,000-square-foot production facility in Mendoza to ensure SunOptaís supply chain. SunOpta also received a first right of refusal and an option to acquire all the outstanding shares of Babyís Best and related companies based on a predetermined formula, exercisable in March 2009.
SunOpta has also entered into a three-year organic supply agreement with a processor of organic and natural frozen fruits in Chile. Under terms of the agreement, SunOpta will finance a capital expansion to further develop growth in organic supply over the next three years.
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