CANADA- Canadian food and beverage processor Lassonde Industries Inc. has announced the acquisition of specialty food manufacturer and distributor Summer Garden Food Manufacturing for US$235 million plus add-ons depending on Summer Garden Food’s future financial performance.
The acquisition will be finalized via Lassonde’s US subsidiary. Under the terms of the acquisition agreement, Lassonde will pay Summer Garden Food’s administrator, Zidian Group US$235 million.
The transaction will be complete in 30 to 45 days and is not subject to any financial condition or any other closing condition. The deal is only subject to regulatory clearance.
The Canadian food company is also required to pay US$45 million in several installments spread over 3 years, albeit dependent on Summer Garden Food’s financial performance.
Nathalie Lassonde, Lassonde’s founder and CEO said, “The acquisition of Summer Garden supports our ambition to become a more diversified North American food and beverage company.”
“Growing our specialty food activities is one of Lassonde’s key strategic objectives, and we are happy to have found the right company to help us achieve this objective. Our culture and values align with those of Summer Garden, which is also a multi-generational family business, with an entrepreneurial spirit and strong commitment to its employees, customers, consumers, and the communities in which it operates,” Lassonde added.
Lassonde revealed the move is part of its product diversification strategy. The Canadian company is expected to leverage Summer Garden Food’s product portfolio and distribution network as it seeks to penetrate the US market.
Summer Garden Foods develops, manufactures, and distributes sauces and various condiments including cream-based pasta sauces, tomato sauce, barbecue sauces, and dressings under the Little Italy in the Bronx, Gia Russa, and G Hughes Brands. The company has over 250 products sold in 20,000 locations throughout the US.
Lassonde views the move as an important step towards achieving the Canadian food processor’s US$3 billion sales target. The company also praised the potential of Summer Garden Food’s brands, especially in the Canadian market.
Vince Timpano, Lassonde’s COO said, “Through brands that hold growth potential in their categories, Summer Garden expands our core offering in pasta sauces and extends our reach into new adjacencies. We are also integrating high-quality assets into our network, including additional retort capabilities, to position ourselves as the manufacturer of choice for our customers.”
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