Lassonde Industries, a Canada-based producer of fruit and vegetable juices and drinks, is set to extend its equity interest in Clement Pappas and Company (CPC) by purchasing the entire shares held by Pappas family members for $21.2m.
The transaction, which is expected to close in May 2013, will help Lassonde increase its equity interest in CPC from 70.7% to 84%. The remaining shares are held by CPC CEO Clement David Pappas (6%) and Lassonde family members (10%).
As the transaction eliminates financial liabilities associated with the purchased shares, the company expects to make a total gain of approximately $800,000.
Lassonde Industries CEO and chairman Pierre-Paul Lassonde said the company's investment in CPC in 2011 was made in accordance with its business and strategic plan.
"This additional investment in CPC confirms our confidence in the success of this plan and in our continued partnering with CPC's lead executive," Lassonde added.
CPC is a food processing and juice bottling firm based in New Jersey. It produces fruit juices, fruit drinks, teas, enhanced waters and cranberry sauces.
