The transaction will be funded through Premium Brands’ existing bank facilities and is expected to be immediately accretive to the company’s earnings. Belmont Meats reported annual sales of $120 million.
“We are not only very excited about Belmont’s business and the potential for it to grow under the Premium Brands umbrella, but also the role it will play in creating value in several of our other businesses,” George Paleologou, president and CEO of Premium Brands, said in a statement. “In particular we expect to generate significant synergies between Belmont’s business, our burger operations in western Canada and our Centennial Foodservice business’ recently announced initiative to expand into the Ontario market.”
The company also is looking to expand into the United States. Belmont Meats is in the process of introducing some of its products into the US retail market. The meat processor is celebrating its 50th anniversary in business this year.
Paul Roach, president and CEO of Belmont Meats, said “Premium Brands has a great track record of partnering with management to build successful businesses. We are looking forward to working with them as we expand and grow our business in both Canada and the US.”