SunOpta (STKL) to Acquire Babco Industrial in $18.9M Deal
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SunOpta Inc. (Nasdaq: STKL) announced that Opta Minerals Inc. has acquired all of the outstanding common shares of Babco Industrial Corp.located in Regina, Saskatchewan. SunOpta owns approximately 66.4% of Opta's outstanding common shares and approximately 64% on a fully-diluted basis.
Babco is a profitable industrial processor and supplier of petroleum coke ("pet coke"), synthetic slag, ladle sand and crushed graphite. This acquisition complements Opta's existing product portfolio and provides for additional product line offerings to new and existing customers in the region. The Babco facility has capacity for further growth and expansion and is strategically located in proximity to its key vendors and customers.
As consideration for the acquisition of the Babco shares, Opta paid approximately $17.6 million in cash on closing, subject to customary post-closing purchase price adjustments, and is obligated to pay up to an additional $1.3 million in cash pursuant to a contingent five year earn-out if the acquired business achieves certain future EBITDA targets. The acquisition is expected to be immediately accretive to both Opta's and SunOpta's earnings.
Babco is a profitable industrial processor and supplier of petroleum coke ("pet coke"), synthetic slag, ladle sand and crushed graphite. This acquisition complements Opta's existing product portfolio and provides for additional product line offerings to new and existing customers in the region. The Babco facility has capacity for further growth and expansion and is strategically located in proximity to its key vendors and customers.
As consideration for the acquisition of the Babco shares, Opta paid approximately $17.6 million in cash on closing, subject to customary post-closing purchase price adjustments, and is obligated to pay up to an additional $1.3 million in cash pursuant to a contingent five year earn-out if the acquired business achieves certain future EBITDA targets. The acquisition is expected to be immediately accretive to both Opta's and SunOpta's earnings.
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