Bonduelle has today (21 March) announced it has completed the acquisition of Ready Pac Foods, the US producer of convenience fresh meal solutions, salads and fresh cut produce, for US$409m – a multiple of about 11 times adjusted EBITDA estimated for full-year 2016/17.
The announcement came after the Federal Trade Commission of the United States gave the thumbs up to the deal earlier in the day.
According to the US group, the acquisition will benefit Ready Pac Foods through increased investment and extended geographic reach, helping drive its vision for continued growth.
The company also expects an increased need for additional associates (employees) with the greater innovation, larger footprint and expanded distribution this acquisition will bring.
“Since joining Ready Pac Foods more than three years ago, I have witnessed the passion, hard work and dedication of our more than 3,500 Associates across the country, resulting in a remarkable turnaround for the company, culminating in this acquisition,” said Ready Pac Foods CEOTony Sarsam. “Joining the Bonduelle family of companies provides us with greater opportunities to grow and innovate, and we are thrilled to be embarking on this next chapter. We are looking forward to a bright future with Bonduelle.”
The acquisition of Ready Pac Foods makes the US Bonduelle’s largest country of operations and biggest division.
This aligns with its strategic plan, the group noted, and will strengthen the brand’s leadership positions in its core business lines. These include development of Bonduelle's business in the consumer convenience and healthy food segments, increasing presence in the fast-growing fresh prepared segment and reinforcement of its footprint in North America.
“This milestone acquisition for Bonduelle is a key step toward achieving our strategic ambition – VegeGo! 2025 – to become the world reference in well-living through vegetable products,” said Bonduelle chairman and chief executive officer, Christophe Bonduelle. “This acquisition will strengthen Bonduelle's international footprint and dramatically change our profile, offering new opportunities to Ready Pac Foods’ business partners and employees, while delivering significant value to Bonduelle shareholders.”
As previously announced, in connection with the closing, Bonduelle acquired 100 per cent of the common stock of Ready Pac Foods and will run Ready Pac Foods as a wholly-owned subsidiary.