Los Angeles-based Flagship Food Group agreed to acquire Atlantic Foods Group, Ltd. The transaction will bring together two businesses focused on developing, sourcing, manufacturing and distributing a wide range of innovative food products for retail and restaurant customers. U.K.-based Atlantic Foods Group will bolster Flagships' international presence, while adding an impressive lineup of foodservice products and customers. The combined business is expected to generate approximately $300 million in annual turnover, operating seven facilities in five time zones. Terms of the proposed transaction were not disclosed.

"The acquisition of Atlantic Foods Group will represent an excellent opportunity for us to further develop our global food business, building on the successful acquisitions we have achieved to date,” says Rob Holland, chief executive officer. “It will provide new competencies for us in the fast growing foodservice markets and extend our geographic footprint into Europe."

Russell Maddock and Edward Baker will remain in their current capacities as CEO and managing director, respectively, of Atlantic Foods.

The transaction, which has been recommended by the Board of Atlantic Foods Group, requires approval from the Atlantic Foods Group shareholders. Completion of the deal is expected to occur by the end of May 2013.