Failed expansion to China
In November 1994, Sun-Rype announced plans to expand to China. The company signed a memorandum of understanding with Shanghai Jinqiao EPZ Scientific Development Co. Ltd. to produce and sell its juices in the Asian country. With a plant located in the Jinqiao Export Processing Zone in Pudong, Sun-Rype invested 65% of the $13 million project cost and anticipated to be selling its juices by the end of 1995.[7]
This expansion plan almost immediately started to falter, and in 1997, Sun-Rype was forced to create a new joint venture with Lion Group, a Malaysian conglomerate. With this deal in place, Sun-Rype received land, equipment, and future working capital, while Lion Group took over ownership of the Asian subsidiary.[8]
By 1998, after net losses of $5.8 million in 1997, the venture was not proving to be profitable, so in March of that same year, Sun-Rype decided to pull out of the Chinese market.[9][10] The company absorbed $4.4 million in losses.[11]
Hostile takeover attempt
In July 1996, Clearly Canadian Beverage Corporation initiated a $40 million hostile takeover bid of Sun-Rype.[12] The reasons behind this attempt were to immediately double Clearly Canadian's revenues and give it use of Sun-Rype's bottling plant, thus centralizing its production facilities.[13] In order to initiate the takeover, Clearly Canadian began buying as many shares as possible from local apple growers who had been issued the shares over the last five decades in return for the process-grade apples used in production by Sun-Rype. At the time of the takeover attempt, Sun-Rype was still a co-operative organization, not a public company, so there were few ways for shareholders to sell their shares.[14]
Shareholders were given the option of either one Clearly Canadian share per Sun-Rype share, or $1.61 and a half of a Clearly Canadian share per Sun-Rype share. This offer finally gave true financial value to the shares, inclining many shareholders to sell them. Both Sun-Rype's board of directors and the BC Fruit Growers Association argued against the takeover attempt to shareholders, and on July 18, the board of directors offered an 18–page document detailing why shareholders should refrain from selling.[15]
Initial public offering
The hostile takeover attempt by Clearly Canadian proved how unsatisfied shareholders were with Sun-Rype management styles and caused differences within the company, apple growing community, and investors.[14] As a result, Sun-Rype finally went public on the Toronto Stock Exchange on November 12, 1996, with 2.35 million shares opening at $2.75 a share.[20][21] It used the profits from the offering to pay off a $6.3 million bank debt and help fund its new Chinese operation.[22]
From public corporation to private
In September 2013, Sun-Rype Products Ltd. became privately owned by the Jim Pattison Group.[23]
Sale to Lassonde Industries Inc.
On October 29, 2019, The Jim Pattison Group sold its wholly owned subsidiary Sun-Rype to Lassonde Industries Inc. for CA$80 million, in an all cash deal expected to close before the end of the current calendar year.[24][25] As well, in announcing the sale, it was reported that Sun-Rype had CA$164 million in gross sales for their fiscal year ended September 30, 2019, and CA$9 million in EBITDA.[25][24]
