Premium Brands Holdings acquires Denmark Sausage for US$21M
The Canadian food company is adding nearly US$698.4 million to its revenue as it continues its acquisition spree.
CANADA – Premium Brands Holdings is on track to increase its revenue as it acquires yet another company, Denmark Sausage, for US$21 million.
The Peoria, Arizona-based premium sausage manufacturer joins a list of recent acquisitions, including NSP Quality Meats, Casa Di Bertacchi, and Italia Salami, as the company pursues its long-term growth strategy.
The food business, which deals in fresh meats, seafood, and bakery products, has set a revenue target of US$5.02 billion to US$5.16 billion for the new fiscal year.
Last year, Premium Brands reported a 3.3% increase in revenue, reaching US$4.51 billion for the 12 months ending December 28.
Despite upcoming tariffs between the US and Canada set to take effect on April 2, CEO George Paleologou said the company is well-positioned to navigate the potential impact.
The company’s operations in both countries provide a buffer against these trade barriers, with approximately 60% to 65% of its organic growth coming from the US market.
Premium Brands’ Specialty Foods segment and Premium Foods Distribution business both have some exposure to cross-border trade, particularly in cooked meats, which account for about US$216 million in shipments.
Paleologou noted that the company is evaluating acquisitions carefully and only moving forward with those that are beneficial to its overall growth.
Denmark Sausage is expected to follow a similar growth path to Isernio’s, another sausage and marinated meat company in Washington State that has quadrupled in size since its acquisition.
Trade tensions between the US and Canada remain a factor, with Canada imposing an initial round of tariffs on US$21 billion worth of American goods and a second round valued at US$87.5 billion set to take effect in early April.
Premium Brands stated that discussions between the two governments are ongoing, but there is no certainty that an agreement will be reached to eliminate or reduce the tariffs.
Even with these uncertainties, Paleologou expressed confidence in the company’s ability to manage potential disruptions through its manufacturing presence in both markets.
For the current fiscal year, Premium Brands projects an EBITDA range of US$476 million to US$490 million, following a 6.2% increase last year to US$416 million.
Adjusted earnings per share dropped by 1.2% to US$2.83 last year, though the company did not provide projections for this metric in 2025.
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