Smart Balance to acquire Udi's Healthy Foods
June 1, 2012
PARAMUS, N.J. — Smart Balance, Inc. has signed an agreement to acquire Udi’s Healthy Foods, L.L.C. for $125 million.
Smart Balance will acquire Udi’s from majority shareholder Hubson Acquisition, L.L.C., an affiliate of E&A industries, the family of founder Udi Baron and other minority holders.
“Udi's leading bread and bakery portfolio is the perfect complement to Glutino’s wide range of grocery products,” said Stephen Hughes, chairman and chief executive officer of Smart Balance. “With this transaction, we will offer the most comprehensive portfolio of gluten-free products to address one of the fastest-growing categories in the food industry. This portfolio of gluten-free brands and products will enable us to offer all retailers in North America a one-stop strategic partner to address the growth in gluten-free.”
The transaction is expected to close in July. Mr. Hughes also said the acquisition will accelerate Smart Balance’s growth rate and diversify the company’s product mix toward natural brands.
Devin Anderson, chief executive officer of Udi’s Healthy Foods said the company’s sales have grown from $4.3 million in 2009 to an annualized run-rate of $72.4 million in sales, based on the results for the first quarter of 2012.
Smart Balance is based in New Jersey and produces buttery spreads as well as gluten-free products through its Glutino brand.