USA – Premium Brands Holdings has announced the acquisition of the North American brand and manufacturer of beef jerkey and other protein based snack foods, Oberto.
The purchase encompasses all of the assets and operating divisions of Seattle based Oberto Sausage company, and the transaction expected to close within the next four to six weeks.
It includes a range of products sold under the brand names, Oberto, Pacific Gold Reserve and Cattleman’s Cut brands.
The transaction is however subject to regulatory approvals that is, expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act.
According to Mr. George Paleologou, President and CEO Premium Brands, the transaction creates a leading North American platform in the growing meat snacks category and will feature Canada’s top meat snack brands including McSweeney’s, Grimm’s, Freybe, Pillers, Harvest and Hempler’s brands.
“Oberto will be our third major investment in Washington State.
Our two prior ones: sandwich maker SK Food Group and premium processed meats producer Hempler Foods Group have both prospered under the Premium Brands umbrella with their combined sales growing from under US$130 million in 2011 to over US$560 million last year.
We fully expect Oberto to replicate this type of success by combining its current strengths with access to our various resources,” said Paleologou.
Oberto, founded in 1918, has operated as an independent, family-owned business and a marriage to Premium Brands enhance ability to grow and thrive for the next 100years, according to Oberto CEO Tom Hernquist.
“Premium Brands has a sterling track record of nurturing and growing family-owned businesses with their extensive meat expertise, capital investment philosophy, procurement and distribution platforms and an operating model focused on supporting and developing each operating business unit,” he added.
Premium Brands also announced that they had increased investment from 36.2% to 66.2% in McLean Meats Inc., a niche marketer and supplier of branded, high quality, preservative free and organic processed meats.
According to GlobeNewswire, combined purchase price for the Company’s investments in Oberto and McLean is approximately US$237 million while the combined revenues of the two businesses are approximately US$246 million.