Premium Brands Holdings to acquire three meat-products’ companies for US$200M
CANADA – Premium Brands Holdings, based in Canada, has finalized the acquisition of three meat-products companies, two in the United States and one in Canada, with combined annual revenues of approximately US$200 million.
The companies acquired include NSP Quality Meats, Casa Di Bertacchi, and Italia Salami.
The transactions were valued at US$66 million, with US$50 million paid in cash, US$10 million in shares, and an additional US$6 million in contingent consideration, according to the company.
NSP Quality Meats operates production facilities in Oklahoma, Texas, and Missouri, focusing on cooked proteins and deli meats.
Casa Di Bertacchi, located in New Jersey, produces both branded and private-label cooked protein products.
Italia Salami, based in Ontario, Canada, specializes in traditional dry-cured Italian salami.
Premium Brands Holdings’ president and CEO, George Paleologou, stated that these acquisitions would strengthen the company’s Specialty Foods Group division.
He explained that the additions aim to address potential risks related to border and tariff issues.
Paleologou emphasized that NSP Quality Meats and Casa Di Bertacchi would help expand the company’s U.S. cooked protein operations, while Italia Salami would provide additional production capacity to support the Marcangelo brand’s Italian charcuterie products.
In addition to the acquisitions, Premium Brands Holdings disclosed the sale and leaseback of its recently expanded Hempler’s deli meats facility in Washington state.
This deal generated US$68 million in gross proceeds.
Despite the recent developments, the company acknowledged challenges in achieving its full-year sales and EBITDA targets due to difficulties faced by a major U.S. foodservice customer.
For the third quarter of 2024, Premium Brands Holdings reported US$1.16 billion in revenue, a modest 1.3% increase compared to the same period in 2023.
Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) rose slightly by 0.4% to US$159.4 million.
However, adjusted earnings per share declined by 12.6% to US$1.11.
The company stated that the recent acquisitions are expected to contribute positively to earnings per share by 2025.
Sign up HERE to receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.
