Premium Brands expands in U.S. with three acquisitions worth $200M
The Vancouver-based food company will buy two packaged sandwich businesses as well as a stake in a California bakery
VANCOUVER—Premium Brands Holdings Corp. is expanding its presence in the U.S. market with a trio of purchases worth a combined $200 million (US$156.5 million).
The Vancouver-based company, which makes pre-packaged and other specialty foods, said it has agreed to acquire Minnesota’s Buddy’s Kitchen Inc. and California-based Raybern Foods, as well as buy a 50 per cent stake in a San Francisco-area bakery that makes artisan breads and pastries.
The three deals add to the company’s American footprint, particularly in the prepared sandwich business.
Buddy’s Kitchen operates two manufacturing plants in the Minneapolis area that make sandwiches and other prepared foods for airlines and convenience stores. Raybern Foods, meanwhile, runs a 146,000 sq. ft. facility in Mississippi that makes sandwiches and wraps.
“Buddy’s and Raybern’s greatly complement our existing businesses as well as each other,” said Steve Sposari, president of the Canadian company’s North American Sandwich Group. “With Buddy’s we gain a new line of unique and innovative products, a very flexible production platform with excess capacity and significantly improved access to the U.S. convenience store and airline segments. Raybern’s provides us with one of the leading premium sandwich brands in the U.S. and will enable us to further strengthen and expand our reach in the U.S. retail channel.”
Shaw Bakers, in which Premium Brands will acquire a 50 per cent stake, runs a 67,600 sq. ft. site outside San Francisco.
All three deals remain subject to customary closing conditions.