UNFI Acquires Canadian Distributor

PROVIDENCE, R.I. United Natural Foods Inc. (NASDAQ:UNFI) entered into a definitive agreement to acquire the Canadian food distribution assets of the SunOpta Distribution Group business (SDG) of SunOpta Inc. (NASDAQ:STKL), for total consideration of approximately CND$68 million (US$66.6 million) in cash. The transaction is expected to close by early June 2010. Upon closing, the SDG business will be operated through a wholly-owned subsidiary of UNFI, and will operate in Canada as UNFI Canada Inc., headquartered in Toronto.

SDG is Canadas largest distributor of organic, natural, kosher and specialty foods, serving approximately 6,000 customer locations, 15,000 SKUs and five distribution centers. Its 2009 revenues were in excess of CND$175 million (US$171.6 million).

This acquisition is the latest step in our strategy to grow our Specialty Foods and Organic business, said Steve Spinner, UNFIs president and CEO. We are excited about entering the dynamic Canadian market and feel terrific about welcoming SDG to our organization. Both companies have a rich history of commitment to sustainability, integrity and philanthropy.

Steve Bromley, president and CEO of SunOpta, commented: In 2002, we started to build our natural, organic and specialty food and natural health products distribution business in Canada. We are very proud of the attractive platform that has been put in place. Divesting the food distribution assets is an important milestone in our strategy to focus on our core food manufacturing platform, strengthening our balance sheet and positioning SunOpta for the future. We have long admired UNFIs strong values and commitment to the natural, organic and specialty foods industry, and believe they will bring great value to the Canadian marketplace. We want to express our sincere appreciation to our dedicated employees for their years of hard work and dedication and wish them continued success under UNFIs leadership.