Premium Brands, a producer and distributor of specialty food products, has announced that its subsidiary Hemplers’ has entered into an agreement to acquire the business and certain assets of Fletcher’s Fine Foods.
Fletcher’s US sells a variety of premium bacon and fresh sausage products with annual sales of approximately $17 million.
“This transaction fits perfectly with our strategy of investing in companies with strong regional brands then providing their talented management teams with the resources needed to further strengthen their business and help accelerate their growth”, said George Paleologou, Prmium Brands president and CEO. “Furthermore, this transaction brings together three of the U.S. Pacific Northwest’s most iconic specialty packaged meat brands, namely Hempler’s, Fletcher’s, and Isernio’s, which we acquired just last year”.
Under the terms of the transaction, Hempler’s will be purchasing Fletcher’s Fine Foods business and production equipment but not its plant in Algona, WA. Correspondingly, Hempler’s will be transferring production of Fletcher’s products to other manufacturing facilities in the US including its plants in Ferndale, WA and Kent, WA.
The transaction, which has a purchase price of $5.0 million, is expected to close in September 2016 subject to customary conditions.
Source: Premium Brands