Premium Brands is buying C&C Packaging for $146M
CEO says acquisition gives the company a national platform.
VANCOUVER — Premium Brands Holdings Corp. says it will acquire Montreal-based C&C Packing Inc. and affiliate Premium Meat Packers in a cash-and-share deal worth up to $146 million.
Vancouver-based Premium said the purchase price includes $102 million in cash and almost 515,000 shares. An additional $20 million is also part of the deal, but the sum can be lowered if earnings targets aren’t realized.
C&C is a leading supplier of fresh and frozen meat to retailers and food service distributors in Central and Eastern Canada. Its annual sales are around $250 million.
The 42-year-old company is owned and operated by the sons of founder Stanley Cons, both of whom will join Premium Brands.
The transaction is expected to close in April, subject to regulatory approvals.
Premium Brands CEO George Paleologou said acquisition will enable the company to create a national platform complementing its meat distribution initiatives in Western Canada.
The company will partially fund the transaction through up to $86.25 million in gross proceeds, including over-allotments, through the issuing of convertible unsecured subordinated debentures to a syndicate of underwriters led by CIBC Capital Markets and BMO Capital Markets.
Premium Brands owns a range of specialty food and food distribution businesses in Canada and the US.
© 2016 The Canadian Press