Edner of Nevada Inc., a Carson City company that makes nutritional snack bars, will be acquired by a subsidiary of Toronto's SunOpta Inc.
SunOpta said it will pay $4 million in cash for privately held Edner, subject to adjustments for working capital after the deal closes. The price also will include a possible earn-out if financial targets are reached by Edner founders Ed and Vicky Kirschner, who will stay with the company after its sale.
The sale is expected to close within several weeks, SunOpta said.
Edner's annual sales run about $10 million, and SunOpta said Edner has been profitable. The company makes nutrition bars and grain- and fruit-based snack bars for private-label and branded customers.
SunOpta executives said they believe Edner's 104,000-square-foot facility at 2801 Conestoga Drive could support as much as $50 million in annual production without significant additional investment.
The company was founded in 2003.
Steve Bromley, president and chief executive officer of SunOpta, said the company thinks it can boost Edner's earnings by combining SunOpta's buying power for raw ingredients with Edner's production capabilities and marketing channels.
SunOpta also plans to introduce new products to the Carson City plant.
Publicly held SunOpta, which makes healthy food products and distributes organic ingredients, earned $34.1 million on revenues of $281 million in the quarter ended Oct. 2.
