NETHERLANDS – Tradin Organic, organic ingredients supplier and subsidiary of SunOpta has agreed to acquire Dutch based specialty organic oil producer for US$3.4 million (€3 million).
The company said the move is set to bolster its global presence in oil offerings as well as capabilities in sourcing organic raw materials.
As part of the agreement, all Sanmark’s key employees will join Tradin’s team.
Mark Bolier, current president of Sanmark, will assume leadership over Tradin Organic’s global organic oil business, including the recently announced addition of organic avocado oil, sourced from a new Ethiopian facility, and expected to open in the second half of 2019.
“The acquisition of Sanmark is expected to further diversify our global oil desk and provide broader access to high and specialty markets,” said Gerard Versteegh, CEO of Tradin Organic.
“Through this acquisition we are adding seasoned commercial traders to our team who will be able to leverage Tradin’s global reach in organic oils today, while also expanding our ability to source organic raw materials.”
Sanmark sources raw organic materials globally and generates most of its sales into the European and Asia – Pacific markets.
With a focus on organic oils for the food, pharmacy, and cosmetic industries, the company expects to reach around €10 million (US$11.2 million) in revenue in 2019.
SunOpta Inc. is a leading global company focused on organic, non-genetically modified (“non-GMO”) and specialty foods.
Its organic and non-GMO food operations revolve around value-added grain, seed, fruit and vegetable-based product offerings, supported by a global sourcing and supply infrastructure.
The company recently said it had agreed to sell its specialty and organic soy and corn business to Pipeline Foods for US$66.5 million as part of the company portfolio optimization strategy.
This followed disappointing results last year when it reported a loss of US$117.11 million, something that contributed to the ouster of company CEO, David J. Colo last month.