SunOpta Sells BioProcess Unit To Mascoma For $51 Mln
Date: 06-Sep-10
Country: CANADA
Author: Gowri Jayakumar
Canadian organic food processor SunOpta Inc said it has sold its SunOpta BioProcess unit to Mascoma Corp for $51 million, to form a company focused on production of transportation fuels from non-food biomass.
The combined company will be 73 percent owned by Mascoma shareholders, and about 18 percent by SunOpta, and the remainder by the unit's shareholders, SunOpta said in a statement.
Brampton, Ontario-based SunOpta said the combined entity will operate in both the United States and Canada, with an extensive intellectual property position in the cellulosic biofuels sector.
SunOpta said it will account for its ownership position in Mascoma on a cost basis, and consequently will not include the ongoing financial results of Mascoma in operational results.
Shares of SunOpta -- which also operates SunOpta Food Group and Opta Minerals Inc -- have gained about 11 percent in the last three months. They closed at C$5.58 Tuesday on the Toronto Stock Exchange.
