The company considers the deal closed pending the upcoming Sept. 4 deadline for payment on all the shares taken up until that date (and will pay on all such shares until said date). With over 90% of issued and outstanding shares in hand from parties accepting the offer, the company can now move under the British Columbia Business Corporations Act to acquire all outstanding shares not tendered to the offer via the act’s compulsory acquisition provisions. After the compulsory acquisition is done, the company will then move to delist WGI common shares from the TSX and apply for cessation of the relevant reporting issuer requirements in all applicable Canadian jurisdictions.
Given the current status of Opta Minerals as one of the top fully-integrated industrial mineral processor, distributor, and sellers in all of the massive North-American market, the addition of WGI’s infrastructural architecture to the business greatly extends the company’s geographic striking distance and overall product mix. WGI realized some $38.1M in revenues in the most recent fiscal year alone and brings extensive market penetration in industrial abrasive minerals (mostly garnet) to the table.
With a wide global reach already established for their primary abrasives, WGI also has a been carving out a considerable niche in the related area of ultra-high pressure waterjet cutting machine parts/components, which, combined with the vertically integrated process optimization solution capabilities Opta Minerals is known for, creates a real powerhouse in the associated sectors. Opta already has a firm footing as a top solutions provider in custom process optimization, as well as related materials used in areas like steel, foundry, loose abrasive cleaning, and municipal water filtration, with a global production base that stretches from NA, to France and Slovakia. This deal magnifies that footing, amplifying range and effect.
CEO of STKL, Steve Bromley, was pleased at the news of offer condition satisfaction in the WGI deal and asserted to shareholders that the deal would indeed be accretive to ROI, as the fit seems near perfect and should add nicely to overall business/profitability throughput. Successful integration should be a breeze and will help position Opta as a “key global player in industrial minerals,” according to Bromley. A reality which, when fully realized, will further enhance STKL shareholder value.
Opta Minerals also has some key positions in the biofuel area via a minority ownership position in the highly innovative Mascoma Corp., adding further flanking foundation to the Opta Minerals model, with natural pairing to/for the company’s focus on environmentally friendly industrial materials. The addition of WGI will bring real synergy to the already vertically integrated business model and should allow for the propagation of multiple downstream efficiency improvements, some not even fully anticipated yet.
STKL has a 66.2% ownership position in Opta Minerals and has an even larger interest on the other side of the business, a globally-sourced natural and organic food model that even processes/packages, making the other side of the company’s business a self-contained seed-to-shelf entity with its own various processing requirements/competencies.
For more information on SunOpta or to learn more about Opta Minerals, visit either www.SunOpta.com or www.OptaMinerals.com
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