Wishing to further diversify its activities, the Rougemont Industries company Lassonde is acquiring an American manufacturer of specialty foods.
Lassonde buys Summer Garden, a 200-employee Ohio company, in a deal valued at $235 million, the equivalent of $320 million Canadian.
An additional amount of up to US$45 million could be paid over three years if certain financial objectives are met.
Summer Garden manufactures and markets sauces and condiments, including tomato and cream pasta sauces, BBQ sauces, dips and salad dressings.
Its portfolio includes approximately 250 products sold in more than 20,000 retail locations under the Gia Russa and Little Italy in the Bronx brands, as well as the G Hughes brand.
The operation provides Lassonde with a new growth platform to expand its presence in new food segments.
“The growth of activities in the specialty foods segment is one of Lassonde’s main strategic objectives and we are pleased to have found the right company to help us achieve this objective,” comments Nathalie Lassonde, head of management and vice-president of the board of directors of Lassonde.
Summer Garden generated sales of US$148 million over the last 12 months, and operating income (adjusted EBITDA) of approximately US$27.9 million. Lassonde management expects the transaction to help improve its profit margins.
Well known for its juices, Lassonde also offers fruit snacks, cranberry sauces, pasta sauces, soups, fondue broths and sauces, wine, apple cider and cider-based beverages.
Lassonde, whose shares are traded on the Toronto Stock Exchange, has a market value approaching $1 billion.
