Premium Brands Holdings has bought the sandwich unit of Select Food Products. The purchase represents a continuation of an acquisition spree by Premium Foods, which has now completed no fewer than eight acquisitions this year, totalling more than $541 million. (See our coverage of previous acquisitions here.)
Select Food Products makes sandwiches, snacks and desserts for retail and foodservice customers. Premium Brands says it plans to move production to one of its own facilities in Minneapolis, where Select is based.
Premium Brands didn’t disclose the purchase price, but did say that the Select Foods sandwich unit purchase and the July acquisition of a 62 per cent interest in Ontario chicken processor Yorkshire Valley Farms had a total combined purchase price of about $46.2 million.
Other acquisitions this year include Penguin Meats Supply, sausage maker Oberto Meat Snacks, Ontario-based Concord Premium Meats and BC-based meat snack maker Country Prime Meats.
Premium Brands announced the Select Foods purchase as it posted record revenues for the second quarter. The company expects the acquisition to have an immediate positive impact on sales, although the costs of transitioning Select Foods production to one of its own Minneapolis plants will offset incremental adjusted EBITDA this year.
Premium Brands owns a broad range of leading specialty food manufacturing and differentiated food distribution businesses with operations across Canada and the US.