Fruit juice producer Lassonde Industries has put up US$21.2 million to raise its ownership stake in a major U.S. cranberry processor and juice maker.
Rougemont, Que.-based Lassonde last week said it will boost its equity stake in Clement Pappas and Co. to 84 per cent, up from 70.7 per cent, on top of the 10 per cent owned individually by Lassonde family members and six per cent held by Clement David Pappas.
The cash deal erases Lassonde’s financial liabilities tied to its share purchase, to be recorded on the company’s books as a US$800,000 gain.
“This additional investment in CPC (Pappas) confirms our confidence in the success of (Lassonde’s business) plan and in our continued partnering with CPC’s lead executive,” Lassonde CEO Pierre-Paul Lassonde said in a release.
Clement Pappas, founded in 1942 at Carneys Point, near Wilmington, Del., runs production facilities at Baltimore, Seabrook, N.J., Mountain Home, N.C., Springdale, Ark. and Ontario, Calif.
It also bills itself as a “major” producer of cranberry juices, sauces and drinks, with a cranberry receiving station at Carver, Mass.
Lassonde, which bought its controlling share of Pappas in 2011, makes and markets fruit and vegetable juices and drinks under brands such as Everfresh, Fairlee, Flavur, Fruite, Graves, Oasis and Rougemont. In the U.S., it’s the second-biggest processor of store brand ready-to-drink fruit juices and drinks.
Lassonde to buy major U.S. fruit juice firm, June 19, 2011