Premium Brands Holdings Corporation has announced two Canadian food companies, including a seafood distributor, less than a month after it said the global financial picture had stabilized enough for it to resume acquisitions.
Richmond, British Columbia, Canada-based Premium Brands will acquire ready-to-eat cooked food-maker Global Gourmet Foods Inc., also based in Richmond, and Toronto, Ontario, Canada-based fresh and frozen seafood distributor Allseas Fisheries Inc. The combined purchase price for the two acquisitions is approximately CAD 139 million (USD 106.5 million, EUR 89.2 million), consisting of CAD 115 million (USD 88.1 million, EUR 73.8 million) in cash, CAD 10 million (USD 7.7 million, EUR 6.4 million) in Premium Brands common shares and up to CAD 14 million (USD 10.7 million, EUR 9 million) in contingent consideration. The combined revenues of the two businesses is approximately CAD 204 million (USD 156.3 million, EUR 130.9 million), Premium Brands President and CEO George Paleologou said in a press release.
"We are very excited to be once again resuming our acquisition strategy,” he said. “Our pipeline of opportunities is as full as it has ever been and we look forward to making more announcements as the year progresses.”
The Allseas transaction is expected to close in four to eight weeks and is contingent upon the approval of the Canadian Competition Bureau. The company is distributor of fresh and frozen seafood to retail, foodservice, and wholesale customers in Ontario.
"Allseas will further strengthen our national seafood platform and help position us as Ontario's leading seafood distributor," Paleologou said. "We are also looking forward to working with Allseas' very talented, experienced, and highly respected management team to capture cost synergies and improve the depth and scope of the seafood products that Allseas and our other seafood businesses can offer to their respective diverse base of customers.”
Danny Soberano, who co-founded Allseas in 1986, said the acquisition will allow the company to reach a new stage of growth.
"We are very excited to be joining the Premium Brands group. Its entrepreneurial culture and respect for the uniqueness of its individual businesses is the perfect environment for us to continue to execute on our business plan," Soberano said. "Furthermore, we are excited about leveraging the PB ecosystem to create new opportunities and to advance our business to the next level in its growth and development.”
Global Gourmet is one of Canada's leading providers of ready-to-eat kettle cooked food solutions, including protein-based fillings, specialty sauces, soup bases, and side dishes, to retailers and restaurants in Canada and internationally.
"The combination of Global Gourmet with our existing Gourmet Chef business will position us as the leading player in a high-growth niche market that is benefiting from a number of long-term sustainable trends," Paleologou said. "We are also very pleased to be partnering with Global Gourmet's leader, Richard Breakell, who has been a key driver of its growth in recent years. Going forward, Richard will lead the combined operations of Global Gourmet and Gourmet Chef.”
