Closing of Bonduelle Acquisition Drives Ready Pac Foods Vision for Growth, Greater Innovation and Job Creation
IRWINDALE, Calif. and VILLENEUVE-D'ASCQ, France, March 21, 2017 /PRNewswire/ -- The world leader in healthy living through vegetables, Bonduelle (Euronext: BON), today announced it has completed the acquisition of Ready Pac Foods, the U.S. producer of convenience fresh meal solutions, salads and fresh cut produce, for US$409 million, a multiple of about 11 times adjusted EBITDA estimated for FY 2016-2017. The acquisition will benefit Ready Pac Foods through increased investment and extended geographic reach, helping drive its vision for continued growth. The company also expects an increased need for additional Associates (employees) with the greater innovation, larger footprint and expanded distribution this acquisition will bring.
"Since joining Ready Pac Foods more than three years ago, I have witnessed the passion, hard work and dedication of our more than 3,500 Associates across the country, resulting in a remarkable turnaround for the company, culminating in this acquisition," said Ready Pac Foods Chief Executive Officer Tony Sarsam. "Joining the Bonduelle family of companies provides us with greater opportunities to grow and innovate, and we are thrilled to be embarking on this next chapter. We are looking forward to a bright future with Bonduelle."
During its nearly 50-year history, Ready Pac Foods has earned the reputation as a pioneer and leader in the fresh food industry. The company has four production facilities located in the U.S. in Irwindale, Calif., Jackson, Ga., Florence, N.J. and Swedesboro, N.J. The company generates approximately US$800 million in revenues, with a national presence and wide customer base in the U.S. Ready Pac Foods has had private equity (PE) ownership for more than 9 years by HIG Capital.
Bonduelle, now with more than US$3 billion in revenue, is a well-respected, family-owned company, with seven generations of the Bonduelle family involved since its founding in 1853. The French company owns four brands of canned, frozen and fresh vegetables with presence in 100 countries around the world.
The acquisition of Ready Pac Foods makes the U.S. Bonduelle's largest country of operations and biggest division. This aligns with its strategic plan and will strengthen the brand's leadership positions in its core business lines. These include development of Bonduelle's business in the consumer convenience and healthy food segments, increasing presence in the fast-growing fresh prepared segment and reinforcement of its footprint in North America.
"This milestone acquisition for Bonduelle is a key step toward achieving our strategic ambition – VegeGo! 2025 – to become the world reference in well-living through vegetable products," said Bonduelle Chairman and Chief Executive Officer, Christophe Bonduelle. "This acquisition will strengthen Bonduelle's international footprint and dramatically change our profile, offering new opportunities to Ready Pac Foods' business partners and employees, while delivering significant value to Bonduelle shareholders."
As previously announced, in connection with the closing, Bonduelle acquired 100% of the common stock of Ready Pac Foods and will run Ready Pac Foods as a wholly-owned subsidiary.
Advisors and Legal Counsel
Crédit Agricole CIB and Willkie Farr & Gallagher acted as financial and legal advisors to Bonduelle in connection with the transaction. Harris Williams & Co. and Skadden, Arps, Slate, Meagher & Flom acted as financial and legal advisors to Ready Pac Foods.
BONDUELLE, a family business, was established in 1853. Its mission is to be the world reference in "well-living" through vegetable products. Prioritizing innovation and long-term vision, the group is diversifying its operations and geographical presence. Its vegetables, grown over 128,000 hectares all over the world, are sold in 100 countries under various brand names and through various distribution channels and technologies. An expert in agro-industry with 54 industrial sites or its own agricultural production, BONDUELLE produces quality products by selecting the best crop areas close to its customers. Visit http://www.bonduelle.com/en/.
About Ready Pac Foods
Home of the original Bistro Bowl® complete meal salad, Southern California-based Ready Pac Foods has been giving people the freedom to eat healthier for nearly 50 years as a premier producer of convenience fresh foods and fresh cut produce. With processing facilities throughout the United States, Ready Pac Foods manufactures a complete range of products featuring fresh produce and protein under the company's Bistro®, Ready Snax®, Cool Cuts® and elevĀte™ brands. Offerings include fresh-cut salads, fruits, vegetables, snacking and complete meals available where consumers buy groceries and in restaurant chains across North America. For more information, visit www.readypac.com or follow us on Facebook, Twitter and Instagram.
SOURCE Ready Pac Foods