Sale of Soy and Corn Business

12 Months Ended

Jan. 02, 2021

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 completed the sale of its specialty and organic soy and corn business to Pipeline Foods, LLC for $66.5 million, subject to certain post-closing adjustments. The soy and corn business engaged in seed and grain conditioning and corn milling from five facilities located in the U.S. and formed part of the Company's Global Ingredients segment. The net proceeds from this transaction were initially used to repay borrowings under the Company's Global Credit Facility.

For the year ended December 28, 2019, the Company recognized the following pre-tax gain on sale of the soy and corn business, which was recognized in other income:

	$
Cash consideration	66,500
Less: post-closing adjustments	(1,348	)
Less: costs to sell	(1,828	)
Net proceeds	63,324

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 on sale	44,027

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 years ended December 28, 2019 and December 29, 2018. For the period ended February 22, 2019, the soy and corn business had revenues of $10.3 million and a loss before income taxes of $0.2 million. For the year ended December 29, 2018, the soy and corn business had revenues of $104.4 million and earnings before income taxes of $2.3 million (net of management fees charged by SunOpta Corporate Services).