Sofina Foods acquiring Lilydale
February 18, 2010
by Bryan Salvage
EDMONTON, AB. – Sofina Foods Inc. have agreed to acquire Lilydale Inc. in a deal valued at more than $130 million. Lilydale is a national processor of fresh and frozen poultry, deli meats, sausage and meat snacks with brands that include: Lilydale, Tailgate, Daystarters, Country Fair, Roast & Boast and ZamZam.
Privately owned Sofina Foods, manufactures and distributes further-processed pork, beef and poultry products for retail and foodservice customers in Canada, the U.S. and Japan. Sofina’s diversified product portfolio includes the Fletcher’s, Cuddy, Quality Meats and Vienna brands in addition to an established private-label business.
According to the agreement, the acquisition would be completed after Lilydale’s shareholders are allowed to sell company shares for $10 each, in cash and approximately $5.43 per share in debentures for aggregate consideration of $75 million representing a significant premium over the historical book value of the shares. The transaction is expected to close in April 2010.
“Over the past several years, Lilydale has been approached by a number of different companies regarding potential transactions; however, the company did not feel that any of those potential suitors were the right fit until now,” said Don Sundgaard, Lilydale’s chairman of the board.
The combined revenues of the company are expected to exceed $800 million each year and employ more than 3,300 employees, according to a news release.
“This is an exciting day for Lilydale as we turn the page of a new chapter in our history,” said Ed Rodenburg, Lilydale president and C.E.O. “This year marks our 70th anniversary and, in partnership with Sofina, we look forward to providing our retail and foodservice customers and consumers with an even stronger and broader portfolio of premium meat products covering all the major proteins, in both primary and further processing.”