Premium Brands Holdings adds Stampede to M&A roster

Canada’s Premium Brands Holdings has wrapped up the twelvemonth with different acquisition, snapping up US-based Stampede Culinary Partners.

Premium Brands is paying conscionable shy of US$664m for the Bridgeview, Illinois-headquartered business, which specialises successful the sous-vide cooking method for nutrient and plant-based proteins.

Starting successful 1995 with beef and pork, Stampede has since expanded into poultry, prepared meals and vegetables produced astatine six US facilities and 1 successful Canada, located successful Cambridge, Ontario, according to its website.

Foodservice is Stampede’s superior lawsuit transmission but it besides supplies retail, nine stores, nutrient distributors and subject institutions.

Payment for the concern is divided into $512.5m successful currency and $150m successful shares of Premium Brands. Stampede volition besides beryllium eligible for a $100m payout if it achieves set, but undisclosed, profitability targets successful the adjacent 2 years.

George Paleologou, the president and CEO of Premium Brands, said successful a statement: “Over the past mates of years, we person made important investments successful accumulation capableness to enactment the maturation of our market-leading branded and customised cooked-protein initiatives successful the US.

“The acquisition of Stampede volition further accelerate our maturation successful this market.”

Paleologou added the woody volition supply “significant unused accumulation capacity”, and bring successful sous-vide capabilities.

Subject to contention approval, the transaction is expected to adjacent by the extremity of January.

Stampede CEO Brock Furlong said: “We are precise excited astir joining the Premium Brands household and look guardant to leveraging its resources and complementary accumulation capabilities to accelerate the maturation of our business.

“In particular, we spot tremendous opportunities to merchantability galore of the exciting, premium products produced by the Premium Brands ecosystem to our divers portfolio of foodservice and emergent retail customers.”

Premium Brands said the acquisition volition supply a mid-single-digit summation to its adjusted net per stock implicit the archetypal afloat twelvemonth of ownership, rising to high-single digits including expected “synergies”.

Meanwhile, Premium Brands volition part-fund the currency information of the transaction done indirect stock offers and bonds.

The institution is selling US$325m of alleged nationalist subscription receipts and US$108m of convertible notes, according to a abstracted presentation, portion a further US$80m volition beryllium drawn from existing recognition facilities.

Stampede is expected to make $936m successful gross this twelvemonth and $108m successful adjusted EBITDA, on with nett net earlier taxation of $17.9m, the presumption papers showed.