Hempler Foods Group LLC, a subsidiary of Premium Brands Holdings Corporation, has announced an agreement to acquire Fletcher's Fine Foods U.S. for $5 million USD.
"I am very pleased to have Fletcher's U.S. join our family of lead brands," said Stephen Bates, President of Hempler's, according to a press release. "Earlier in my career I was a proud member of the Fletcher's U.S. organization and I am very excited about once again playing a part in the growth and development of the Fletcher's U.S. brand."
Expected to close in September of this year, the company noted that the purchase price will be adjusted if Fletcher's U.S.'s net working capital at closing is above or below a defined normalized level.
While the deal is still subject to customary conditions, Hempler’s stated that it will be purchasing Fletcher's U.S.'s business and production equipment but not its plant in Algona, WA. Instead, it will be transferring the company’s product to its U.S. plants, including one in Ferndale, WA, and Kent, WA.
"This transaction fits perfectly with our strategy of investing in companies with strong regional brands then providing their talented management teams with the resources needed to further strengthen their business and help accelerate their growth," George Paleologou, President and CEO of Premium, said. "Furthermore, this transaction brings together three of the U.S. Pacific Northwest's most iconic specialty packaged meat brands, namely Hempler's, Fletcher's, and Isernio's, which we acquired just last year. All of these brands are known for their authentic, top quality, specialty products, and their long histories of community engagement and charitable giving.”
Premium Brands noted that it expects the deal to be immediately accrative to its earnings per share and free cash flow per share.