Quebec's Lassonde Industries Inc. is acquiring Old Orchard Brands, a family-owned juice and beverage company based in Sparta, Michigan, for US$146 million.
In a press release, Lassonde said the deal would improve its ’s manufacturing footprint in the Midwestern United States, strengthen its presence in the U.S. national brands juice sector and give it access to a production line for frozen concentrated products.
Old Orchard Brands reported sales of US$103.3 million and an adjusted EBITDA of US$15.8 million for its 2017 fiscal year.
"Old Orchard has a good reputation in the United States and enjoys solid brand loyalty, especially in the Central United States," said Jean Gattuso, president and chief operating officer of Lassonde Industries Inc., in a press release.
"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," he continued.
Lassonde has also agreed to purchase Old Orchard Brands' plant and land for US$4.0 million, subject to certain regulatory conditions. If the conditions aren't met, the property will be rented under a long-term lease. The deal is expected to close in May 2018.
Lassonde is the maker and marketer of such brands as Apple & Eve, Everfresh, Fairlee, Fruité, Graves, Oasis and Rougemont.