VANCOUVER — Hempler Foods Group L.L.C., a subsidiary of Premium Brands Holdings Corp., has entered into an agreement to acquire the business and certain assets of Fletcher’s Fine Foods (Fletcher’s US) for $5 million, which is subject to adjustment based on Fletcher’s US’s net working capital at closing.
With annual sales of approximately $17 million, Auburn, Wash.-based Fletcher’s US sells premium bacon and fresh sausage products in the Pacific Northwest under the Fletcher’s brand. The company was founded in 1985 by a predecessor of Premium Brands and later sold as part of a larger transaction in 2004. Under terms of the transaction, which is expected to close in September and is subject to customary conditions, Hempler’s will acquire Fletcher’s US’s business and production equipment but not its facility in Algona, Wash. Hempler’s plans to transfer production of Fletcher’s US’s products to other manufacturing plants in the United States, including facilities in Ferndale, Wash., and Kent, Wash.
The transaction is expected to be immediately accretive to Premium Brands’ earnings per share and free cash flow per share.
“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 George Paleologou, president and chief executive officer of Premium Brands. “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. All of these brands are known for their authentic, top quality, specialty products and their long histories of community engagement and charitable giving.”
Stephen Bates, president of Hempler’s, added, “I am very pleased to have Fletcher’s US join our family of lead brands. Earlier in my career I was a proud member of the Fletcher’s US organization, and I am very excited about once again playing a part in the growth and development of the Fletcher’s US brand.”Vancouver-based Premium Brands owns a broad range of specialty food manufacturing and food distribution businesses with operations in Canada and the United States. Brands include Grimm’s, Harvest, McSweeney’s, Piller’s, Freybe, Expresco, Hempler’s, Isernio’s, Direct Plus, SK Food Group, OvenPride, Audrey's, Bread Garden Go, Hygaard, Quality Fast Foods, Deli Chef, Creekside Bakehouse, Stuyver’s Bakestudio, Gourmet Chef, Duso’s, Centennial Foodservice, B&C Food Distributors, Shahir, Wescadia, Harlan Fairbanks, Maximum Seafood, Ocean Miracle, Hub City Fisheries, C&C Packing and Premier Meats.