Premium Brands Holdings has made significant strides by acquiring two meat-products companies in the US and one in Canada.
The newly acquired companies – NSP Quality Meats, Casa Di Bertacchi, and Italia Salami – together generate approximately US$200 million in annual sales, according to Premium Brands Holdings, which is headquartered in Canada.
Notably, NSP Quality Meats specializes in manufacturing cooked protein and deli meats, with facilities strategically located across the states of Oklahoma, Texas, and Missouri.
Meanwhile, Casa Di Bertacchi is known for producing both branded and private-label cooked protein products from its facility in New Jersey.
On the other hand, Italia Salami stands out with its expertise in crafting “authentic” dry-cured Italian salami, operating from its plant in Ontario, Canada.
In total, Premium Brands Holdings acquired these three companies for US$66 million, comprising US$50 million in cash, US$10 million in shares, and an additional “contingent consideration” of US$6 million.
George Paleologou, the president and CEO of Premium Brands Holdings, stated that these three meat businesses are poised to “significantly enhance” the company’s Specialty Foods Group division. This acquisition positions Premium Brands to “largely mitigate any potential border and tariff-related risks.”
Paleologou further emphasized, “NSP and Casa will play major roles in supporting the continued growth of our market-leading branded cooked protein initiatives in the US by providing much-needed capacity and improving our access to additional key US markets.”
While Italia Salami represents a smaller acquisition, it is expected to provide the Concord business with essential local production capacity, enhancing their successful Marcangelo branded Italian charcuterie offerings.
The transactions are anticipated to be “accretive” to Premium Brands Holdings’ earnings per share for 2025, according to the company’s statement.
In addition to these acquisitions, Premium Brands reported the sale and leaseback of its recently expanded production facility for Hempler’s deli meats in Washington, yielding gross proceeds of $68 million.
Furthermore, in November, Premium Brands Holdings cautioned that it is likely to miss its full-year sales and EBITDA targets due to challenges faced by a major foodservice customer in the US.
In the third quarter of 2024, the company reported revenue of C$1.67 billion (US$1.16 billion), reflecting a 1.3% increase compared to the same quarter in 2023.
Adjusted EBITDA for this period rose modestly by 0.4%, reaching C$159.4 million, while adjusted EPS fell by 12.6%, landing at C$1.11 per share.
