Inventure Foods to acquire vegetable processor Fresh Frozen Foods

Inventure Foods, a US-based speciality food marketer and manufacturer, has signed a letter of intent to acquire Fresh Frozen Foods, a full-service processor and supplier of frozen vegetables, in a deal estimated to be worth about $38m.

Fresh Frozen, headquartered in Jefferson, Georgia, offers more than 60 varieties of frozen vegetables and fruits to retail outlets across the south-east US and the Caribbean Islands.

In the most recent 12-month period, the company posted gross revenues of more than $60m.

The letter of intent also includes a deferred consideration in the form of an earn-out of up to $3m based on performance in 2014, subject to certain purchase price adjustments.

Subject to completion of due diligence, agreement on a definitive purchase agreement and other customary closing conditions, the deal is expected to be completed on or before 1 November 2013.

Inventure Foods plans to back the transaction through a new senior syndicated credit facility, which will be provided prior to closing.

The company has appointed Wedbush Securities for financial advisory services on the transaction.

If completed, the deal is expected to be immediately accretive to earnings.

Fresh Frozen’s processing facility in Thomasville, Georgia, will provide year-round freezing operations, increasing the company’s geographic footprint, while allowing it to leverage its business and support future growth.

Inventure CEO Terry McDaniel said, "This acquisition allows Inventure to add uniquely positioned frozen vegetables to our healthy/natural portfolio for the first time, while also expanding our IQF processing capabilities for fruits and vegetables in a new geographic region."

Fresh Frozen president Bill Griffin said, "Fresh Frozen has established a very strong market position in the south-east. Inventure is well positioned to help us meet growing demand, increase our footprint into more doors beyond the region, and expand our product offerings to existing retail markets, food service distributors, and industrial customers."

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Image: The acquisition allows Inventure to add uniquely positioned frozen vegetables to its natural portfolio for the first time. Photo courtesy of Volkan Ulusoy.