News: They keep growing...and growing...Premium Brands Expands Sandwich Platform
VANCOUVER, BRITISH COLUMBIA, Feb 14, 2011 (MARKETWIRE via COMTEX News Network) -- Premium Brands Holdings Corporation (TSX: PBH) a leading producer, marketer and distributor of specialty branded consumer food products announced today that it has entered into a definitive agreement to acquire Canada Bread Company Limited's (TSX: CBY) pre-packaged sandwich operations and related direct-to-store delivery (DSD) networks. The transaction, which is subject to normal closing conditions, is expected to close on February 18, 2011.
"This transaction provides us with the manufacturing and distribution infrastructure needed to accelerate our growth into eastern Canada and moves us closer to our goal of building North America's leading prepackaged sandwich manufacturing platform," said Mr. George Paleologou, President and CEO. "Furthermore, it strengthens our competitive position across Canada by:
-- expanding our family of specialty brands;
-- providing us with a proprietary DSD network in eastern Canada that complements our DSD network in western Canada; and
-- positioning us to provide national sandwich programs to both convenience store and grocery retailers."
The acquired business, which will operate under the name Les Aliments Deli Chef, has two sandwich manufacturing facilities: one in Gatineau, Quebec and the other in Toronto, Ontario; as well as a central distribution facility in Laval, Quebec; a 14 truck convenience store DSD network in southern Ontario and a 44 truck convenience store DSD network in Quebec.
"We are very pleased to be welcoming the Les Aliments Deli Chef employees to our organization," said Mr. Paleologou. "Given the similarity of our values I am very confident that the transition of the business from Canada Bread to Premium Brands will be seamless.
"We are also very pleased to be expanding our relationship with both the Canada Bread and Maple Leaf Foods organizations through a variety of strategic initiatives, including bread and processed meats supply agreements. We look forward to working with them to create value for both of our companies," said Mr. Paleologou.
Financial Guidance
The transaction is expected to have a small negative impact on Premium Brands' EBITDA in 2011 as it repositions Les Aliments Deli Chef for future sustainable growth. In addition, as part of this repositioning, the Company expects to incur an additional $6 million to $7 million in capital and restructuring related costs.
"Our objective is for Les Aliments Deli Chef to be generating annual sales and EBITDA of $50 million and $5 million, respectively, within the next five years," said Mr. Paleologou.
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, Ontario, Quebec, Washington State and Nevada. The Company services over 25,000 customers and its family of brands and businesses include Grimm's, Harvest, McSweeney's, Bread Garden Express, Hygaard, Hempler's, Quality Fast Foods, Gloria's Best of Fresh, Harlan Fairbanks, Creekside Bakehouse, Centennial Foodservice, B&C Foods, Duso's Fine Foods, Maximum Seafood, SK Food Group, Hub City Fisheries, Audrey's, Deli Chef and Hamish & Enzo.
Forward-Looking Statements
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Contacts: Premium Brands Holdings Corporation George Paleologou President and CEO (604) 656-3100 Premium Brands Holdings Corporation Will Kalutycz CFO (604) 656-3100
SOURCE: Premium Brands Holdings Corporation
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