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SunOpta To Acquire Seed Supplier Dahlgren & Company For $44 million

Last updated: 19:33 08 Nov 2010 GMT, First published: 20:33 08 Nov 2010 GMT

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SunOpta (Nasdaq:STKL, TSX:SOY), a food processor and packager based in Brampton, Ontario, said today it will buy Dahlgren & Company for $44 million in cash.

Under the agreement, shareholders of Dahlgren may also receive additional payments if pre-determined targets are achieved over the next two years.

Dahlgren, based in Crookston, Minnesota, is a supplier of sunflower seeds and other seed products.  The company sells about 40% of its products internationally and also has operations in every state in the U.S.  It employs around 150 people and generates about $80 million in revenues.

The deal, financed entirely through bank debt, is expected to be immediately accretive to SunOpta's earnings.

After the closing of the deal expected today, Dahlgren's three owners, Thomas Miller, Charles Considine and Timothy Egeland, will remain with the business.

Aside from its food business, SunOpta also owns 66.4% of Opta Minerals (TSX: OPM), an industrial materials recycler, and is a minority owner of Mascoma, a biofuels company.

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