Premium Brands acquires Belmont Meat in Ontario

Canadian food product distributor Premium Brand has acquired a 100% stake in Ontario-based Belmont Meats.

As per the terms of the deal, Premium Brands will be paying C$50m ($37.9m) of which it will be paying C$49.2m ($37.3m) in cash and C$0.8m ($0.6m) in common shares of Premium Brands. The purchase price for the shares is subject to certain customary adjustments.

Premium Brands president and CEO George Paleologou said: “We are not only very excited about Belmont’s business and the potential for it to grow under the Premium Brands umbrella, but also the role it will play in creating value in several of our other businesses.

“In particular, we expect to generate significant synergies between Belmont’s business, our burger operations in western Canada and our Centennial Foodservice business’ recently announced initiative to expand into the Ontario market.

“Furthermore, Belmont’s strong management team significantly enhances our bench strength in the Ontario market.”

Belmont produces burger patties in Canada and manufactures customised premium burgers for retail and foodservice customers across the country.

It has an annual sale of approximately C$120m ($91.1m).

Belmont Meats president and CEO Paul Roach said: “Premium Brands has a great track record of partnering with management to build successful businesses. We are looking forward to working with them as we expand and grow our business inboth Canada and the US.”

Belmont is also planning to introduce a number of its products into the US retail market.