Eden Prairie's SunOpta sells frozen fruit business for $141 million

Eden Prairie-based SunOpta has sold much of its frozen fruit business to a Canadian company for $141 million.

The frozen fruit business was much less profitable than other units for SunOpta, which focuses primarily on making plant-based milks for private-label and national brands.

The fruit segment had annual sales of $263 million — more than a quarter of the past year's $880 million in sales — yet CEO Joe Ennen said the divestiture will boost the company's bottom line.

"The divestiture of our frozen fruit business is a major milestone in our portfolio optimization efforts ... and ensures we are singularly focused on the most attractive growth opportunities," he said in a news release Friday morning.

Investors rewarded the move by sending SunOpta's stock price up nearly 25%, to $3.55, on Friday.

SunOpta has shed many of its legacy commodity businesses in recent years to focus on its goal of doubling its plant-based business. The company also produces fruit snacks.

Quebec-based Nature's Touch bought the frozen fruit business following SunOpta's attempts at innovation, such as frozen smoothie bowls. Ennen said last year that "there's only so much value one can add with frozen strawberries in a bag."

The company clarified Friday afternoon that it will continue to make and market the smoothie bowls, which were not part of the sale.

The company on Friday also announced Greg Gaba will be chief financial officer, replacing Scott Huckins, who left to take a job as the next CFO of Reynolds Consumer Products.