CPPIB invests $200m in speciality food manufacturer PBH

The Canada Pension Plan Investment Board (CPPIB) has announced an investment of $200m in speciality food manufacturer Premium Brands Holdings (PBH).

As a result of the private placement, CPPIB will acquire 2,631,000 common shares at a price of $76.02 each.

Premium Brands president and CEO George Paleologou said: “We are very pleased to be entering into this long-term partnership with CPPIB as we embark on the next stage of our growth strategy.

“As we have expanded our footprint across North America, our pipeline of acquisition and organic growth opportunities have scaled dramatically.

“By partnering with CPPIB not only do we better position ourselves to execute on these opportunities but we also secure a long-term focused shareholder who shares our values and vision for the future.”

Premium Brands intends to use the net proceeds of the CPPIB private placement to repay debt, finance organic and acquisition growth opportunities, as well as general corporate purposes.

CPPIB has been supporting long-term value creation through its investments, both within Canada and internationally.

Upon completion of the deal, the company will own approximately 7.1% of the outstanding common shares in PBH.

CPPIB Active Equities senior managing director and global head Deborah Orida said: “Premium Brands’ strong track record of value creation, combined with its opportunities to expand its portfolio in Canada and the US, making this a compelling investment for CPPIB.

“This investment builds on our Relationship Investments group’s strategy to provide strategic, long-term capital to leading public companies where we can help create greater value through an ongoing partnership.”

Additionally, PBH has agreed to offer CPPIB certain board nomination rights and a pre-emptive right to participate in future public and private offerings of securities of the company.