LASSONDE INDUSTRIES INC. INCREASES ITS EQUITY INTEREST IN CLEMENT PAPPAS AND COMPANY, INC.
Rougemont, Quebec, May 21, 2013 – Lassonde Industries Inc. (TSX: LAS.A) (“Lassonde”) has agreed with members of the Pappas family to purchase all of the shares of Clement Pappas and Company, Inc. (“CPC”) held by the Pappas family members other than Clement David Pappas, a long-time CPC executive and its current CEO. The purchase price of US$ 21.2 million is to be paid cash and will be funded out of Lassonde’s working capital. Closing of the transaction is expected to occur in May 2013.
This transaction extinguishes financial liabilities associated with the purchased shares, accounted for as retractable financial instruments. As a result, the Company expects that a gain, net of related costs, totalling approximately US$ 0.8 million will be recognized.
Upon closing of the transaction, Lassonde’s equity interest in CPC will be increased from 70.7% to 84.0%; of the remaining 16.0%, 6.0% is held by Clement David Pappas and 10.0% by members of the Lassonde family. Lassonde has also agreed to guarantee a minimum price upon exercise of the existing put and call rights provided in the CPC shareholders agreement in respect of the shares held by Clement David Pappas.
“Our investment in CPC in 2011 was made in accordance with our business and strategic plan. This additional investment in CPC confirms our confidence in the success of this plan and in our continued partnering with CPC’s lead executive” said Mr. Pierre-Paul Lassonde, chairman and CEO of Lassonde Industries Inc.
