VANCOUVER – Premium Brands announced that it will be acquiring Montreal- based C&C Packing Inc. and its affiliate, Premium Meat Packers, in a deal worth $146 million (US$111 million).
C&C, which was founded in 1974 by Stanley Cons, brings in annual sales of around $250 million and is one of the leading fresh and frozen meat products to retailers and foodservice distributors across central and eastern Canada.
“C&C perfectly complements our protein distribution and trading initiatives in western Canada and, with its strong and experienced management team and state-of-the-art facilities, will enable us to create a unique national platform in another niche market segment,” said George Paleologou, Premium Brands’ President and CEO.
Paleologou added, “This transaction, which will be our third major investment in Quebec, also fits perfectly with the business diversification strategies that form a core part of our business plan and which have enabled us to consistently improve our performance in each of the last ten years despite numerous external challenges. C&C will further diversify our customer base, expand our presence in Quebec and the Maritimes, and add to our product portfolio.”
This purchase also includes $102 million (US$78 million) in cash, the issuance of nearly 515,000 Premium Brands common shares and consideration of $20 million (US$15 million) which is subject to possible reduction if certain post-acquisition earnings targets are not realized.
“We are very excited to be joining Premium Brands. Its entrepreneurial culture and focus on premium and differentiated products is an ideal fit for our business,” said Ronnie Cons, C&C’s CEO. “I have no doubt that there will be significant top and bottom line growth opportunities created through the combination of our businesses."