CANADA/US: Lassonde Industries buys stake in Clement Pappas & Co
Clement Pappas and Co is billed as the second-largest maker of store-brand ready-to-drink fruit drinks in the US
Lassonde Industries has signed a US$390m deal to take a majority stake in Clement Pappas & Co.
The Canadian fruit juice manufacturer said late last week that it expects the deal to acquire a 71% stake in privately-owned Clement - a US-based cranberry processor and juice maker - to close in August. The transaction is expected to create a major North American manufacturer in the fruit juice and drink category with coast-to-coast presence in Canada and the US, Lassonde said.
Of the remaining 29% stake, 19% will be held by members of the Pappas family and 10% by members of the Lassonde family.
Clement Pappas is billed as the second-largest maker of store-brand ready-to-drink fruit drinks in the US.
"This transaction combines two premier fruit juice and drink manufacturers to form a North American category leader," said Lassonde's CEO, Pierre-Paul Lassonde. "It is aligned with our strategy of consistent, measured growth and enhances our overall position in the industry."
Upon completion, Clement Pappas will maintain its headquarters in New Jersey. It will continue to do business under the Clement Pappas name and will retain its existing management team.
The company operates five production facilities located in Seabrook, New Jersey; Baltimore, Maryland; Mountain Home, North Carolina; Springdale, Arkansas and Ontario, California. It employs around 630 staff.
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