Premium Brands announces long-term $200M partnership with CPPIB
Net proceeds of the investment will be used to repay debt, finance organic and acquisition growth opportunities and for general corporate purposes
VANCOUVER – Premium Brands Holdings Corporation has completed a private placement of 2,631,000 common shares from treasury to Canada Pension Plan Investment Board at a price of $76.02 per common share for aggregate gross proceeds of approximately $200 million.
The Canadian specialty food manufacturing and distribution company intends to use the net proceeds of the CPPIB Private Placement to repay debt, finance organic and acquisition growth opportunities and for general corporate purposes.
Premium Brands’ President and CEO, George Paleologou, said the investment is part of the company’s growth strategy. “By partnering with CPPIB… we gain access to the insights of a leading global investor, which will become increasingly important as we start to look beyond North America,” said Paleologou.
In turn, CPPIB reports the investment is a way to provide strategic, long-term capital to leading public companies.
“Premium Brands’ strong track record of value creation, combined with its opportunities to expand its portfolio in Canada and the U.S., make this a compelling investment for CPPIB,” said Deborah Orida, Senior Managing Director & Global Head of Active Equities, CPPIB.
In Canada, Premium Brands has manufacturing and distribution facilities in British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Quebec and Nova Scotia. The company has about 6,500 employees.