Under the terms of the agreement, Banyan will pay cash of C$14m ($13.59) and provide a C$700,000 ($679,823) note. The existing Purity Life Natural Health Products president Matthew James will lead the business under the new ownership.
SunOpta president and chief executive Steve Bromley said that the transaction completes the company's exit from the distribution business and simplifies and enables the company to focus on strengthening its balance sheet and position itself for future growth opportunities.
The company divested its food distribution assets in mid-2010 as a part of its restructuring strategy to focus on core integrated natural and organic foods sourcing and processing segment, Bromley said.
Speaking on the deal, Matthew James said, "With our seasoned team of professionals remaining intact and based out of Acton, Ontario, we remain focused on improving the quality of the services that we supply as well as the innovation that we provide to the marketplace."
Purity Life Natural Health Products product portfolio includes dietary supplements, vitamins, natural body care and earth friendly household goods and natural health care products. It has annual revenues of about C$60m ($58.27m).
Banyan Capital Partners is a subsidiary of Connor, Clark & Lunn Financial Group, a multi-boutique asset management firm that provides managed investment products and services to Canadian individual investors.
The deal is expected to close in June 2012, subject to customary conditions and preclosing matters.
