Boulder Brands buys frozen food maker EVOL Foods

US-based food company Boulder Brands has purchased EVOL Foods, a frozen convenience foods manufacturer, from founder Phil Anson and a group of investors in a $48m all-cash deal.

Headquartered in Boulder, Colorado, EVOL Foods is owned by Phil’s Fresh Foods, and it offers burritos, quesadillas, entrées, bowls, and skillet meals made with ingredients that are antibiotic- and hormone-free, and free from artificial preservatives or flavours.

For the 12-month period ending 31 December 2013, the company is expected to record a 70% increase in net sales to $17m.

Boulder Brands chairman and CEO Stephen Hughes said, "While this acquisition is relatively small in size, we believe it to have significant potential for Boulder Brands, as EVOL is a category-elastic brand in an exciting segment that will further accelerate our growth rate and diversify our mix to high-growth natural brands.

"With EVOL, Boulder Brands will participate in this exciting growth opportunity with a newly defined ‘pure and simple’ food platform," he added.

Boulder backed the deal through a combination of its recently expanded senior secured term loan credit facility, revolver and cash on hand.

The company stated that EVOL’s product portfolio complements its Udi’s range of gluten-free frozen baked goods.

It expects EVOL to contribute about $25m in net sales and generate $1.5m in EBITDA in 2014 and be accretive to earnings per share (EPS) in 2015.

For fiscal 2014, Boulder Brands is expected to record revenues of up to about $550m with adjusted EBITDA of up to $94m and EPS in the range of $0.41 to $0.46.

Fried, Frank, Harris, Shriver & Jacobson advised Boulder Brands, while Houlihan Lokey and Robinson & Cole advised EVOL Foods on the transaction.

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Image: EVOL Foods produces frozen convenience foods such as burritos, quesadillas, entrées and skillet meals. Photo courtesy of KEKO64 at FreeDigitalPhotos.net.