Pinnacle buys Garden Protein International for $154m

US-based Pinnacle Foods will buy plant-based protein food maker Garden Protein International for $154m (C$175m).

Pinnacle will buy Garden from its founder Yves Potvin and private equity firm TSG Consumer Partners.

Garden is based in Vancouver and markets its products under the ‘Gardein’ brand, which was founded by Potvin in 2009. It manufactures frozen products that serve as alternatives for traditional animal-based protein formats, such as chicken strips and tenders, ground beef and fish fillets.

Pinnacle Foods CEO Bob Gamgort said: "The acquisition of Gardein is a key enabler to continue building Birds Eye into the leading health and wellness brand focused on helping Americans eat more vegetables. By bringing Gardein under the Birds Eye umbrella, we will accelerate growth through expanded distribution, marketing and innovation.

"We believe that plant-based protein is at the tipping point of becoming mainstream, making Gardein an exciting new growth platform for the Birds Eye business."

The acquisition will also include a manufacturing facility in Vancouver, British Columbia, and about 250 employees. The purchase price will be funded with available liquidity.

Pinnacle will further invest in Gardein in 2015 to continue to expand the brand and leverage the complementary positioning of Gardein and Birds Eye in the marketplace. However, the company expects minimal impact on its earnings in 2015.

Perella Weinberg Partners is serving as the financial advisor to Pinnacle Foods, while Houlihan Lokey is serving as financial advisor to Garden Protein International.