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Sale of Soy and Corn Business
6 Months Ended
Jun. 29, 2019
Sale Of Soy And Corn Business [Abstract]  
Sale of Soy and Corn Business [Text Block]
4.

Sale of Soy and Corn Business

On February 22, 2019, the Company’s subsidiary, SunOpta Grains and Foods Inc., completed the sale of its specialty and organic soy and corn business to Pipeline Foods, LLC ("Pipeline Foods") for $66.5  million, which is subject to certain post-closing adjustments including the finalization of the closing working capital balance. The soy and corn business engaged in seed and grain conditioning and corn milling and formed part of the Company’s Global Ingredients reportable segment. The business included five facilities located in Hope, Minnesota, Blooming Prairie, Minnesota, Ellendale, Minnesota, Moorhead, Minnesota, and Cresco, Iowa. The net proceeds from this transaction were initially used to repay borrowings under the Company’s Global Credit Facility (see note 9).

Pending finalization of the post-closing adjustments, the Company recognized a gain on sale of the soy and corn business, which was recorded in other income for the quarter and two quarters ended June 29, 2019, as follows:

    Quarter ended     Two quarters ended  
    June 29, 2019     June 29, 2019  
    $     $  
Cash consideration    -     66,500  
Transaction and related costs   (201 )   (1,825 )
Net proceeds   (201 )   64,675  
Current assets    -     22,810  
Property, plant and equipment    -     8,423  
Goodwill    -     1,526  
Current liabilities    -     (13,462 )
Net assets sold    -     19,297  
Pre-tax gain (loss) on sale   (201 )   45,378  

As the soy and corn business did not qualify for presentation as discontinued operations, operating results for this business prior to February 22, 2019 were reported in continuing operations on the consolidated statements of operations for the current and comparative periods. For the period ended February 22, 2019, the soy and corn business generated revenues of $10.3  million and reported a loss before income taxes of $0.2  million. For the quarter and two quarters ended June 30, 2018, the soy and corn business generated revenues of $29.5  million and $50.9  million, respectively, and reported earnings before income taxes of $2.4  million and $4.7  million, respectively. The reported pre-tax results exclude management fees charged by Corporate Services and do not reflect other cost reduction measures associated with the sale of the soy and corn business that were taken in connection with the Value Creation Plan (see note 5).