VANCOUVER, BRITISH COLUMBIA – Premium Brands Holdings Inc. acquired Global Gourmet Foods Inc. and signed an agreement to acquire Allseas Fisheries. Richmond, British Columbia-based Global Gourmet Foods is a custom processor of ready to serve soups, sauces and entrees. Allseas Fisheries is an importer and distributor of fresh and frozen fish, seafood and live lobsters based in Etobicoke, Ontario.
The combined purchase price for Global Gourmet and Allseas is approximately C$139 million consisting of C$115 million in cash, C$10 million in Premium Brands common shares and up to C$14 million in contingent consideration. Premium Brands said combined revenues of the two businesses is approximately C$204 million and both transactions are expected to be immediately accretive to Premium Brands’ earnings per share and free cash flow per share on an annual basis.
“The combination of Global Gourmet with our existing Gourmet Chef business will position us as the leading player in a high growth niche market that is benefiting from a number of long-term sustainable trends,” said George Paleologou, president and chief executive officer of Premium Brands. “We are also very pleased to be partnering with Global Gourmet's leader, Richard Breakell, who has been a key driver of its growth in recent years. Going forward, Richard will lead the combined operations of Global Gourmet and Gourmet Chef.”
The acquisition of Allseas is expected to further strengthen Premium Brands Holdings’ national seafood platform and position the company as Ontario’s leading seafood distributor by capturing cost synergies and improving the depth and scope of the seafood products that Allseas and Premium Brands Holdings’ other seafood businesses can offer to their customers, Paleologou said.