PARSIPPANY, N.J. — Pinnacle Foods, Inc. has agreed to acquire a frozen warehouse and vegetable packaging facility from Ryder Integrated Logistics for $37.5 million, according to an Aug. 9 filing with the U.S. Securities and Exchange Commission.
The maker of Birds Eye frozen vegetables said the acquisition will be funded with cash on hand and expects to begin integration of the facility into its supply chain network in the second half of this year.
The facility, located in Beaver Dam, Wis., is expected to drive productivity and margin enhancement, consistent with the network optimization initiatives in Pinnacle Foods’ long-term strategic plan, beginning in the second half of 2018, the company said.In the recent quarter, Pinnacle Foods’ Birds Eye business posted double-digit sales growth behind the launch of new product lines, including organic and superfood blends. But net earnings overall in the second quarter decreased 59% to $18,618,000, while net sales fell 1.6% to $744,608,000. Results were negatively impacted by a recall and exit of certain Aunt Jemima products, the company said.