Canada’s Premium Brands Holdings has acquired 100% interest in two US-based food companies, Raybern Foods and Buddy’s Kitchen, and also purchased 50% interest in California’s Shaw Bakers.

The total purchase price for the combined transactions is $156.5m, which includes $153m in cash and $3.5m in Premium Brands common shares.

Premium Brands president and CEO Paleologou said: “These transactions both diversify and greatly enhance our Sandwich Platform’s growth opportunities and move it significantly closer to its objective of becoming North America’s leading sandwich manufacturer.”

Based in Minnesota, US, Buddy’s produces sandwiches and other prepared meal solutions for airline and convenience store channels. It operates two production facilities in the Minneapolis area.

“Raybern’s provides us with one of the leading premium sandwich brands in the US and will enable us to further strengthen and expand our reach in the US retail channel.”

California’s Raybern manufactures branded speciality sandwiches for the US retail market and operates a 146,000ft2 facility located in Tupelo, Mississippi, US. The firm’s product offering includes a wide variety of other frozen and refrigerated sandwiches and wraps.

Premium Brands North American Sandwich Group president Steve Sposari said: “Buddy’s and Raybern’s greatly complement our existing businesses as well as each other.

“With Buddy’s, we gain a new line of unique and innovative products, a very flexible production platform with excess capacity and significantly improved access to the US convenience store and airline segments.

“Raybern’s provides us with one of the leading premium sandwich brands in the US and will enable us to further strengthen and expand our reach in the US retail channel.”

Shaw Bakers manufactures and distributes fresh and frozen artisan bread as well as a range of sweet and savoury pastries. It operates a facility in the greater San Francisco area.