SunOpta has sold its sunflower seeds business for $16 million as the Eden Prairie-based food manufacturer continues to narrow its focus on plant-based milks and fruit products.
The business, which represents less than 10% of SunOpta's $886 million in revenue over the past 12 months, consists of hulling and roasting sunflower seeds at three facilities: Breckenridge and Crookston, Minn., and Grace City, N.D.
California-based private equity firm Pacific Avenue Capital Partners closed on the purchase on Tuesday and will rename the business Sunrich Products. No changes to employment or management are expected as a result of the sale, SunOpta said.
SunOpta CEO Joe Ennen said in a statement the divestiture is about "focusing on high-growth, high-return opportunities."
The company has undertaken a significant reorganization in recent years, and its sunflower seeds business is a vestige of its former identity. Previously known as a commodities trader in the natural and organic food space, it shed its global ingredients business two years ago, which accounted for nearly half its revenue — a dramatic step in its multiyear turnaround plan.
SunOpta aims to double its plant-based business by 2025 and has invested heavily in the plant-based milk space to make that happen.
Last week, the company broke ground on a $31 million warehouse in Alexandria, Minn. to expand production of oat milk and other plant-based milks at its two manufacturing facilities in the area. A massive plant-based milk production facility in Texas is on track to open later this year.
The company said in a news release Thursday it will be "fully focused on offering a broad line of plant-based beverages utilizing oat, almond, rice, soy, coconut, hemp and other bases, as well as broths, teas, nutritional beverages and liquid and powder ingredients."
