ROUGEMONT, QC, May 21, 2013 /CNW Telbec/ - Lassonde Industries Inc. (TSX: LAS.A) ("Lassonde") has agreed with members of the Pappas family to purchase all of the shares of Clement Pappas and Company, Inc. ("CPC") held by the Pappas family members other than Clement David Pappas, a long-time CPC executive and its current CEO. The purchase price of US$ 21.2 million is to be paid cash and will be funded out of Lassonde's working capital. Closing of the transaction is expected to occur in May 2013.
This transaction extinguishes financial liabilities associated with the purchased shares, accounted for as retractable financial instruments. As a result, the Company expects that a gain, net of related costs, totalling approximately US$ 0.8 million will be recognized.
Upon closing of the transaction, Lassonde's equity interest in CPC will be increased from 70.7% to 84.0%; of the remaining 16.0%, 6.0% is held by Clement David Pappas and 10.0% by members of the Lassonde family. Lassonde has also agreed to guarantee a minimum price upon exercise of the existing put and call rights provided in the CPC shareholders agreement in respect of the shares held by Clement David Pappas.
"Our investment in CPC in 2011 was made in accordance with our business and strategic plan. This additional investment in CPC confirms our confidence in the success of this plan and in our continued partnering with CPC's lead executive," said Mr. Pierre-Paul Lassonde, chairman and CEO of Lassonde Industries Inc.
About Lassonde Industries Inc.
Lassonde Industries Inc. is a North American leader in the development, manufacture and sale of a wide range of fruit and vegetable juices and drinks marketed under brands such as Everfresh, Fairlee, Flavür, Fruité, Graves, Oasis and Rougemont.
Lassonde is also the second largest producer of store brand ready-to-drink fruit juices and drinks in the United States and a major producer of cranberry juices, drinks and sauces.
Lassonde also develops, manufactures and markets specialty food products under brands such as Antico and Canton. The Company imports and markets selected wines from various countries and manufactures apple ciders and wine-based beverages.
The Company produces superior quality products through the efforts of some 2,000 people working in 14 plants across Canada and the United States. To learn more, visit www.lassonde.com.
SEDAR registration number: 00002099
Caution Concerning Forward-Looking Statements
This press release contains forward-looking statements that are based on certain assumptions. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. Additional factors are discussed in materials filed from time to time with the securities regulatory authorities in Canada. Lassonde Industries Inc. disclaims any intention or obligation to update or revise any forward-looking statements except as required by law.
SOURCE Lassonde Industries Inc.