Premium Brands Holdings Corp., a leading producer, marketer and distributor of branded specialty food products, announced today that it has acquired 100% of the shares of Ontario based Belmont Meats Products Limited. The purchase price for the shares, which is subject to certain customary adjustments, was $50.0 million consisting of $49.2 million in cash and $0.8 million in common shares of Premium Brands.
Belmont, which has annual sales of approximately $120 million is one of the leading manufacturers of burger patties in Canada and produces a wide variety of customized premium burgers for retail and foodservice customers across the country. Belmont is also in the process of introducing a number of its products into the U.S. retail market.
"We are not only very excited about Belmont's business and the potential for it to grow under the Premium Brands umbrella, but also the role it will play in creating value in several of our other businesses. In particular we expect to generate significant synergies between Belmont's business, our burger operations in western Canada and our Centennial Foodservice business' recently announced initiative to expand into the Ontario market," said Mr. George Paleologou, President and CEO. "Furthermore, Belmont's strong management team significantly enhances our bench strength in the Ontario market," added Mr. Paleologou.
"We are very excited to be joining the Premium Brands family," said Mr. Paul Roach, President and CEO of Belmont Meats. "Premium Brands has a great track record of partnering with management to build successful businesses. We are looking forward to working with them as we expand and grow our business in both Canada and the U.S.," added Mr. Roach.
The transaction will be funded through Premium Brands' existing bank facilities and is expected to be immediately accretive to its earnings per share and free cash flow per share.
Source: Premium Brands Holdings Corp.