Inventure Foods Finalizes Acquisition of Frozen Vegetable Processor
Inventure Foods, Inc., Phoenix, Ariz., completed the acquisition of substantially all of the assets of Fresh Frozen Foods, LLC, a branded frozen vegetable processor.
The purchase price was $38.375 million plus deferred compensation in the form of an earn-out of up to $3 million based on 2014 performance. Inventure entered into a new $60 million senior secured term loan and a new $30 million senior secured revolving line of credit with a syndicate of lenders led by U.S. Bank National Association pursuant to a Credit Agreement, a Security Agreement and certain other customary ancillary agreements to fund the purchase and re-pay two existing equipment term loans totaling $8.4 million and the existing revolving line of credit totaling $17.6 million as of Nov. 8. Fresh Frozen reported 15% average annual revenue growth over the last three years, with gross revenues over $60 million during the most recent 12-month period. Full pro-forma financial statements will be released on or before Jan. 25, 2014. The transaction is expected to be accretive to earnings in 2014.
Headquartered in Jefferson, Ga., Fresh Frozen is a family-owned, full-service processor and supplier of more than 60 varieties of frozen vegetables and fruits to retail outlets. The acquisition will allow both companies to leverage each other's sales organizations, distribution channels and products. Additionally, Inventure will now have year-round freezing operations and be able to freeze blueberries and other fruits in a new region of the country.
"As we learn more about the business, we are even more excited to have finalized this acquisition," says Terry McDaniel, chief executive officer of Inventure Foods. "Fresh Frozen is a perfect strategic fit in our healthy/natural portfolio, allowing us to not only diversify into frozen vegetables, but also to meet growing consumer demand for our frozen fruit products. Fresh Frozen, along with our current brands, strengthens our position in the ‘better-for-you’ section of the frozen food aisle."
"We are fortunate to have Fresh Frozen president Bill Griffin continuing to lead the company into a new era of growth and innovation," adds McDaniel.