Lassonde Industries Inc. (TSX:LAS.A) entered into a definitive agreement to acquire Summer Garden Food Manufacturing from Thomas Zidian and his family for approximately $280 million on June 21, 2024. A cash consideration of $235 million will be paid at closing-cash-free, debt-free basis and earnout/contingent payment of $45 million may be payable in various instalments over the next three years, on basis of certain financial targets be achieved and other conditions met. The transaction is not subject to a financing condition and will be financed through the Corporation?s available credit facilities.

For the period ending May 31, 2024, Summer Garden Food Manufacturing reported total revenue of $148 million and adjusted EBITDA of $27.9 million. The acquisition is subject to approval by regulatory board / committee, other closing conditions and is expected to close within 30 to 45 days. The transaction is expected to be accretive to margins and earnings before synergy considerations.

CG / Sawaya Partners acted as financial advisor for Lassonde Industries Inc. Brown Gibbons Lang & Company LLC acted as financial advisor for Summer Garden Food Manufacturing.