L.B. Maple Treat Corporation Acquires Decacer

MONTRÉAL, QUÉBEC and VANCOUVER, BRITISH COLUMBIA--(Marketwired - Nov. 20, 2017) -

KEY TRANSACTION HIGHLIGHTS

• Strengthens leadership position in growing maple syrup industry
• Extends geographic and industry diversification
• Provides access to new, innovative products & packaging, and unique maple sugar dehydration technology
• Incremental operational synergies to be realized
• Best in class manufacturing asset with solid operational team
• Financed via revolving credit facility

Rogers Sugar Inc. (the "Corporation" or "Rogers Sugar") (TSX:RSI) is pleased to announce the acquisition by L.B. Maple Treat Corporation ("LBMT") of 9020-2292 Quebec Inc. (operated as Decacer) ("Decacer"), a major bottler and distributor of branded and private label maple syrup and maple sugar based in Dégelis, Québec, for $40 million, subject to post-closing adjustments (the "Transaction"), from the Levasseur Family. The Corporation drew on its existing $275 million revolving credit facility to finance the Transaction.

"This transaction is another important step in our strategic growth initiatives to reinforce our leadership position in the growing maple syrup industry. Decacer will broaden our maple syrup operations and expand our product offering, including a unique maple sugar dehydration technology, which provides us with an excellent line extension to our current sugar portfolio for consumer and food processor customers. On a pro-forma basis, we estimate that more than 20% of the Corporation's total sales will be derived from maple syrup, of which more than 70% of those sales will be exported worldwide. This acquisition, combined with the acquisition of LBMT in August 2017, will allow us to create a solid platform as well as various sales and operational synergies and provide opportunities for organic growth going forward. At the same time, the acquisition of Decacer will re-prioritize some of those synergies," said John Holliday, President and Chief Executive Officer.

"Decacer represents a solid complementary fit to Lantic Inc. ("Lantic") and LBMT. Once combined, we see opportunities to leverage sales and marketing efforts and fully take advantage of favourable growth trends in the maple syrup industry," said Eliott Levasseur, Vice President of Decacer.

DECACER ATTRIBUTES AND TRANSACTION

Headquartered in Lévis, Québec, Decacer has a state-of-the-art bottling plant in Dégelis, in the heart of the Bas-Saint-Laurent region, one of Québec's largest maple syrup producing regions. For the 12-month period ended March 31, 2017, Decacer's products were sold in Canada (~47%), Internationally (~40%) and in the U.S. (~13%). For the same period, private label and branded products accounted for approximately 75% and 25% of total sales, respectively.