NEWS: Premium Brands expandingPremium Brands Holdings Corporation Announces Acquisition of Specialty Pasta Manufacturer
VANCOUVER, BRITISH COLUMBIA, Mar 31, 2010 (Marketwire via COMTEX News Network) --
Premium Brands Holdings Corporation (TSX:PBH), a leading producer, marketer and distributor of branded specialty food products, announced today the acquisition of an 80% interest in Vancouver, BC based Duso's Enterprises Ltd. ("Duso's") for approximately $5.6 million.
Duso's is a specialty manufacturer of high quality branded and private label fresh pastas and sauces. It has annual sales of approximately $7.0 million and its customers include a variety of retailers across western Canada.
"This transaction is based on our strategy of offering successful entrepreneurs customized ownership solutions that address their estate planning needs while also providing their business with the resources needed for continued growth," said Mr. George Paleologou, President and CEO.
"Founders Mauro and George Duso have done an exceptional job building Duso's from the ground up and we are very pleased to become Mauro's partner as his brother George nears retirement later this year.
"Looking forward, we expect to create significant growth opportunities for Duso's by providing it with access to our foodservice distribution network as well as our distribution facilities," stated Mr. Paleologou. "In addition, we intend to leverage Duso's pasta and sauce expertise to expand the product offerings of our retail sales networks."
"I am delighted to be partnering with Premium Brands," said Mr. Mauro Duso. "Duso's has been a long-term supplier to Premium Brands' retail direct-to-store distribution business and I have no doubt that the cultures of our companies will be a perfect fit.
"I am also very excited about working with Premium Brands to take our business to the next level," added Mr. Duso.
The $5.6 million purchase price, which is subject to adjustment if Duso's net working capital at closing is above or below a defined level, consisted of $4.0 million in cash, the issuance of 69,252 shares and a $600,000 vendor take back note due three years after closing. Premium Brands will not assume any funded debt under the terms of the transaction.
As part of the transaction, Premium Brands will help Duso's fund the purchase of approximately $1.0 million in state-of-the-art pasta making equipment.
The transaction is expected to be immediately accretive to both Premium Brands' earnings per share and free cash flow per share.
About Premium Brands Premium Brands owns a broad range of leading specialty food manufacturing and differentiated food distribution businesses with operations in British Columbia, Alberta, Saskatchewan, Manitoba and Washington State. The Company services over 25,000 customers and its family of brands include Grimm's, Harvest, McSweeney's, Bread Garden Express, Hygaard, Hempler's, Quality Fast Foods, Gloria's Best of Fresh, Harlan's, Creekside Bakehouse, Centennial Foodservice and B&C Foods.
SOURCE: Premium Brands Holdings Corporation
Premium Brands Holdings Corporation George Paleologou President and CEO (604) 656-3100 Premium Brands Holdings Corporation Will Kalutycz CFO (604) 656-3100 www.premiumbrandsholdings.com
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