Premium Brands owns a range of leading food manufacturing and distribution businesses with operations in BC, Alberta, Saskatchewan, Manitoba, Ontario, Quebec, Nevada, Ohio and Washington State. The company services a base of customers located across North America and its family of brands and businesses include Grimm's, Harvest, McSweeney's, Piller's, Freybe, Expresco, Hempler's, Isernio's, Direct Plus, SK Food Group, OvenPride, Hygaard, Quality Fast Foods, Deli Chef, Gourmet Chef, Duso's, Centennial Foodservice, B&C Food Distributors, C&C Packing and Premier Meats.
Fletcher's U.S., which sells a variety of bacon and fresh sausage products in the Pacific Northwest under the Fletcher's brand, has annual sales of approximately $17 million USD. It was founded by a predecessor of Premium Brands in 1985 then later sold as part of a larger transaction in 2004. Under the terms of the transaction, Hempler's will be purchasing Fletcher's U.S.'s business and production equipment but not its plant in Algona, WA. Correspondingly, Hempler's will be transferring production of Fletcher's U.S.'s products to other manufacturing facilities including its plants in Ferndale, WA and Kent, WA.
"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 Mr. George Paleologou, 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.”
"I am very pleased to have Fletcher's U.S. join our family of lead brands," said Mr. Stephen Bates, President of Hempler's. "Earlier in my career I was a proud member of the Fletcher's U.S. organization and I am very excited about once again playing a part in the growth and development of the Fletcher's U.S. brand."
The purchase price under the terms of the transaction is $5 million USD and the transaction is expected to close in September 2016 and is subject to customary conditions.
Source: Meatbusiness