Premium Brands Holdings Corp., Canada, announced that its Ferndale, Wash.-based subsidiary, Hempler Foods Group LLC, entered into an agreement to acquire Fletcher's Fine Foods (Fletcher’s US), Auburn, Wash. The transaction is expected to close in September.

Fletcher's US, which sells a variety of premium bacon and fresh sausage products in the U.S. Pacific Northwest under the Fletcher's brand, maintains annual sales of approximately $17 million. It was founded by a predecessor of Premium Brands in 1985, then later sold as part of a larger transaction in 2004. Under the terms of the transaction, Hempler's will purchase Fletcher's US' business and production equipment, but not its plant in Algona, Wash. Correspondingly, Hempler's will transfer production of Fletcher's US' products to other manufacturing facilities in the United States, including its plants in Ferndale, Wash., and Kent, Wash.

"This transaction fits perfectly with our strategy of investing in companies with strong regional brands then providing their talented management teams with the resources needed to further strengthen their business and help accelerate their growth," says George Paleologou, president and CEO. "Furthermore, this transaction brings together three of the U.S. Pacific Northwest's most iconic specialty packaged meat brands, namely Hempler's, Fletcher's and Isernio's, which we acquired just last year. All of these brands are known for their authentic, top-quality, specialty products and their long histories of community engagement and charitable giving."

"I am very pleased to have Fletcher's US join our family of lead brands," says Stephen Bates, president of Hempler's. "Earlier in my career, I was a proud member of the Fletcher's US organization, and I am very excited about once again playing a part in the growth and development of the Fletcher's US brand."