Canadian natural and organic food manufacturer SunOpta soared 26.7 per cent last Friday after a letter from Tourbillon Capital Partners, its largest shareholder, was made public. The letter requested that SunOpta hire advisors to deliver better value to shareholders, which included a suggestion for a potential sale.
Tourbillon holds a 9.9 per cent stake and has reported being disappointed in the company’s results. According to a Food dive article, they could potentially encourage a shakeup of SunOpta’s board and upper management if poor performance continues.
SunOpta released a statement saying that they have been talking to Tourbillon for several months and they appreciate constructive input from all shareholders. They also highlighted some major changes they have put in place over the last year, including the acquisition of Sunrise Growers.
Acquisitions like Sunrise, which increased SunOpta’s scale by about 30 per cent, and Niagara Natural Fruit Snack Company Inc. have grown their top line, but the first quarter still had a net loss of nearly $10 million.
Should the company be sold, SunOpta could be made into a more viable and profitable competitor in the natural and organic space using steep cost-cutting measures, says Food Dive. It could also become a manufacturer, breaking apart from its ingredients business, and its private-label business could be picked up by another private-label company or a consumer-facing company.
