Premium Brands Holdings has acquired two meat-products companies in the US and one in Canada.
The acquired businesses – NSP Quality Meats, Casa Di Bertacchi and Italia Salami – generate combined annual sales of approximately US$200m, Canada-headquartered Premium Brands Holdings said.
NSP Quality Meats manufactures cooked protein and deli meats, operating facilities in the US states of Oklahoma, Texas and Missouri.
Casa Di Bertacchi produces branded and private-label cooked protein products with a facility in New Jersey.
Italia Salami specialises in making “authentic” dry-cured Italian salami and runs a plant in Ontario, Canada.
Premium Brands Holdings said it had paid US$66m for the three companies combined in a mix of US$50m in cash, US$10m in shares and a further “contingent consideration” of US$6m.
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George Paleologou, Premium Brands Holdings’ president and CEO, said the three meat businesses are expected to “significantly enhance” the company’s Specialty Foods Group division, enabling it to “largely mitigate any potential border and tariff-related risks.”
Paleologou added: “NSP and Casa will play major roles in supporting the continued growth of our market-leading branded cooked protein initiatives in the US by providing much needed capacity and improving our access to additional key US markets.
“Italia is a smaller acquisition but provides our Concord business with much needed local production capacity to help support their very successful Marcangelo branded Italian charcuterie offerings.”
The transactions are expected to “accretive” to Premium Brands Holdings’ 2025 earnings per share, the company said.
In addition to the acquisitions, the company reported the sale and leaseback of its recently expanded Hempler’s deli meats production facility in Washington, yielding gross proceeds of $68m.
In November, Premium Brands Holdings noted that the company is likely to miss its full-year sales and EBITDA targets due to “challenges faced by a major foodservice customer” in the US.
The company posted revenue of C$1.67bn (US$1.16bn) in the third quarter of 2024, a 1.3% increase compared to the same quarter in 2023.
Adjusted EBITDA for the quarter rose marginally by 0.4% to C$159.4m, while adjusted EPS fell by 12.6% to C$1.11 per share.
