TORONTO--(BUSINESS WIRE)--

SunOpta Inc. (Nasdaq:STKL) (TSX:SOY), a leading global company focused on organic, non-genetically modified and specialty foods, announced today that it intends to exit its nutrition bar product lines and operations in Carson City, NV. The cessation of operations is part of the Company’s ongoing portfolio optimization strategy and Value Creation Plan.

“The planned discontinuation of our nutrition bar operations reflects our continued efforts to optimize our portfolio to focus on product lines where the Company is effectively positioned to generate long-term profitable returns,” said Dave Colo, CEO of SunOpta. “The decision to cease operations at Carson City is accretive to EBITDA and allows us to redeploy both our financial and human resources towards more profitable segments of our business where we have enhanced strategic positioning.”

Nutrition bars accounted for $13 million of SunOpta’s revenue in fiscal 2016, and $11 million of revenue during the first half of 2017, and were reported as part of the healthy snacks platform within the consumer products segment. The discontinuation of the bar product lines is expected to be positive to EBITDA in future periods. The Company expects to incur charges of approximately $8.0 million to $9.5 million relating to the facility closure, including approximately $5.0 million to $6.0 million of non-cash charges for asset write-downs, and approximately $3.0 million to $3.5 million of cash expenditures for severance and other facility closure costs. The cash charges are expected to be largely offset by the recovery of working capital after the full wind-down of operations. The non-cash and cash charges are expected to be recognized during the third and fourth quarters of fiscal 2017. The Company is working with its nutrition bar customers to expedite the exit from these operations and is targeting completion by the end of fiscal 2017.

“I want to thank all of our employees associated with our Carson City operations for their hard work and dedication,” Colo said. “Each employee has contributed to our goal of bringing well-being to life in their own way and has had a meaningful impact at SunOpta.”

About SunOpta Inc.

SunOpta Inc. is a leading global company focused on organic, non-genetically modified (“non-GMO”) and specialty foods. SunOpta specializes in the sourcing, processing and packaging of organic and non-GMO food products, integrated from seed through packaged products; with a focus on strategic vertically integrated business models. SunOpta’s 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.

Forward-Looking Statements

Certain statements included in this press release may be considered "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation, which are based on information available to us on the date of this release. These forward-looking statements include, but are not limited to, the anticipated impact of our exit from nutrition bar products on earnings, EBITDA, cash flow, and the expected timing to complete the exit from operations in Carson City, NV. Terms and phrases such as "expect", "anticipate", "will", "continue", and other similar terms and phrases are intended to identify these forward-looking statements. Forward looking statements are based on information available to us on the date of this release and are based on estimates and assumptions made by the Company in light of its experience and its perception of historical trends, current conditions and expected future developments as well as other factors the Company believes are appropriate in the circumstances including the contribution of nutritional bars to consolidated revenues and profits historically. The Company makes no representation that reasonable business people in possession of the same information would reach the same conclusions. Whether actual timing and results will agree with expectations and predications of the Company is subject to many risks and uncertainties as described from time to time under "Risk Factors" in the Company's Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q (available at www.sec.gov). Consequently, all forward-looking statements made herein are qualified by these cautionary statements and there can be no assurance that the actual results or developments anticipated by the Company will be realized.

View source version on businesswire.com: http://www.businesswire.com/news/home/20170927005373/en/