Two subsidiaries of Lassonde Industries have signed an agreement with The Jim Pattison Group (JPG) subsidiaries to acquire Canada-based fruit-based snack and beverage manufacturer Sun-Rype Products.

Under the agreement, the subsidiaries will also acquire Sun-Rype’s associated facilities in Selah and Wapato in the US for a cash consideration of around C$80m ($61m), subject to working capital and other adjustments.

Lassonde Industries CEO Nathalie Lassonde said: “It is with great pride and enthusiasm that we look forward to welcoming Sun-Rype’s management team and employees to Lassonde.

“Sun-Rype and Lassonde are two great Canadian companies with decades of a strong presence in the food and beverage industry in North America.

“This transaction is part of our strategy of constant and measured growth and will strengthen our presence in the Canadian and US markets.”

Established in 1946, Sun-Rype has been producing a wide range of ready-to-drink (RTD) fruit-based juices and drinks under the Sun-Rype brand.

The company also manufactures fruit-based snacks under the Sun-Rype, Fruit to Go, FruitSource and Good Bites brands.

With the acquisition of Sun-Rype, Lassonde aims to further strengthen its position in Canadian branded juices and drinks segment and also improve its manufacturing footprint in Western Canada and the North-Western US region.

Furthermore, the acquisition will enhance the commercial network of both companies.

To fund the acquisition, Lassonde will use its Canadian existing credit facility.

Completion of the deal is subject to customary conditions, including the approval of the Competition Bureau and is set to take place by the end of the year.