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Subsequent Events
6 Months Ended
Jul. 01, 2017
Subsequent Events [Abstract]  
Subsequent Events [Text Block]

16. Subsequent Events

Acquisition of Non-Controlling Interests in Mexican Subsidiary

On July 28, 2017, the Company acquired all of the capital stock of Opus Foods Mexico, S.A. de C.V. (“Opus”) held by the non-controlling interests for $1.9 million. This acquisition increased the Company’s equity ownership in Opus from 75% to 100%. Opus owns and operates a frozen fruit processing facility located in central Mexico. The Company acquired its initial 75% interest in Opus through the acquisition of Sunrise.

Rationalization of Flexible Resealable Pouch Operations

On July 26, 2017, SunOpta Foods entered an agreement with Skjodt-Barrett Contract Packaging LLC to sell equipment used in the production of flexible resealable pouches at the Company’s Allentown, Pennsylvania facility for gross proceeds of $2.0 million. The asset sale is in conjunction with the Company’s decision to discontinue flexible resealable pouch products as part of its ongoing portfolio optimization strategy and Value Creation Plan. The transaction is expected to close during the fourth quarter of 2017. The Company will continue to produce flexible resealable pouch products for existing customers until the closing date. The Company’s aseptic beverage operations were not affected by the sale of assets, and the Company will continue to produce aseptic beverages at its Allentown facility.

Revenues from sales of flexible resealable pouch products were $9.3 million and $19.2 million for the quarter and two quarters ended July 1, 2017, respectively, compared with $11.2 million and $24.6 million for the quarter and two quarters ended July 2, 2016, respectively. The production and sale of these products resulted in gross profit losses of $1.2 million and $2.7 million for the quarter and two quarters ended July 1, 2017, respectively, compared with gross profit of $0.2 million and $0.4 million for the quarter and two quarters ended July 2, 2016, respectively. Revenues and gross profit losses from sales of flexible resealable pouch products during the third quarter of 2017 are expected to be similar to those recorded during the second quarter. Depending on the closing date of the sale of the resealable pouch assets, the Company also expects to record a proportionate amount of revenue and gross profit losses from sales of flexible resealable pouch products during the fourth quarter of 2017.

The Company expects to record a loss on the sale of the flexible resealable pouch assets of $8.0 million to $9.0 million, including costs related to the early termination of the related equipment leases at the closing date. The flexible resealable pouch operations are included in the Consumer Products operating segment. As the flexible resealable pouch operations do not qualify for presentation as discontinued operations, operating results from these operations will continue to be reported in continuing operations on the consolidated statements of operations for the year ended December 30, 2017.