CINCINNATI — AdvancePierre Foods Holdings Inc. has acquired Allied Specialty Foods, Inc., a manufacturer of raw and cooked beef and chicken Philly steak products. AdvancePierre purchased the company from Steven Zoll for $60 million in cash.
AdvancePierre expects the acquisition will be accretive to its fiscal 2017 earnings, contributing $11 million to $13 million, AdvancePierre said.
|John Simons, president and CEO of AdvancePierre Foods|
“We are pleased to add Allied’s synergistic product platform and unique capabilities to our existing portfolio and network,” said John Simons, president and chief executive officer of AdvancePierre. “The Philly steak category is primed for growth, and this acquisition strengthens our position, brings us additional products and production capacity, and expands our geographic reach.”
Allied’s customer base is predominantly in the food service industry. The company, founded in 1956, operates out of a 20,000-sq.-ft. manufacturing facility in Vineland, New Jersey, with two cook lines, three raw slicing lines and one breakaway steak line. In June, Allied began building a new 70,000-sq.-ft. facility with seven raw slicing/breakaway lines and four cook lines. That facility is expected to be completed during the first quarter of 2017.
|Dean Hollis, chairman of the AdvancePierre board of directors|
“The addition of Allied further expands AdvancePierre’s market-leading position in the Philly steak platform by providing entry into fully-cooked product offerings,” said Dean Hollis, chairman of the AdvancePierre board of directors. “The transaction is a great example of AdvancePierre’s strategy of strengthening and growing its core business through disciplined, accretive acquisitions. We continue to evaluate a significant number of highly attractive, synergistic acquisition opportunities on the horizon and believe AdvancePierre is well-positioned and capitalized to pursue future opportunities as they arise.”