Premium Brands expanding their holdings through acquisitions
Vancouver, British Columbia With two acquisitions, Premium Brands Holdings Corp., a manufacturer, marketer, and distributor of branded specialty food items in the US, Canada, and Italy, is expanding its product line.
First, Global Gourmet Foods Inc., located in Richmond, British Columbia, was acquired by Premium Brands, one of the country’s top suppliers of ready-to-eat kettle-cooked food solutions, such as protein-based fillings, specialty sauces, soup bases and side dishes. Global Gourmet provides products to restaurants and shops both domestically and abroad.
“We will be positioned as the leading player in a high-growth niche market that is benefiting from a number of long-term sustainable trends with the combination of Global Gourmet with our existing Gourmet Chef business,” stated George Paleologou, president and CEO of Premium Brands. “We are also thrilled to be working together with Richard Breakell, the CEO of Global Gourmet, who has been instrumental in the company’s expansion in recent years. Richard will now oversee the joint operations of Gourmet Chef and Global Gourmet.
Secondly, Allseas Fisheries Inc., located in Etobicoke, Ontario, is a distributor of frozen and fresh fish to retail, foodservice, and wholesale clients in Ontario. Premium Brands has agreed to buy the company.
The overseas deal is anticipated to finalise in four to eight weeks, according to Premium Brands weeks and is subject to standard closing requirements, such as the Canadian Competition Bureau’s approval.
As per Mr. Paleologou, “Allseas will help position us as Ontario’s leading seafood distributor and further strengthen our national seafood platform.” “We also look forward to collaborating with the incredibly skilled, seasoned, and well-respected management team at Allseas to achieve cost efficiencies and expand the range and depth of seafood products that Allseas and our other seafood businesses can provide to their respective, varied clientele.”
According to Premium Brands, the total purchase price for Global Gourmet and Allseas is roughly $139 million, with $10 million in Premium Brands ordinary shares, $115 million in cash, and up to $14 million in contingent consideration. The total income from the $204 million is scheduled to be spent on these two businesses, and the company stated that both should immediately increase Premium Brands’ earnings per share and free cash flow per share on an annual basis.
According to Mr. Paleologou, “We are very excited to be resuming our acquisition strategy.” “As the year goes on, we look forward to making more announcements, and our pipeline of opportunities is fuller than ever.”