Lassonde Industries Inc. has reached an agreement to acquire Old Orchard Brands, LLC, a family-owned juice and beverage company based in Sparta, Michigan, for a total cash consideration of USD146.0 million (subject to working capital and other adjustments) payable upon closing of the transaction. By way of additional consideration, a further amount of up to USD10.0 million may be payable over the next two years subject to specified financial milestones. In addition, Lassonde has agreed to purchase the property, comprised of the plant and land, for USD4.0 million subject to satisfaction of certain regulatory conditions. If the conditions are not met, this property will be rented under a long-term lease.
The closing of the transaction, expected in May 2018, is contingent on the parties agreeing to an action plan that ensures compliance with certain due care regulatory obligations related to the use of the real estate assets. The closing of the transaction is also subject to standard terms and conditions, including obtaining regulatory approvals.
Source: Lassonde