Canadian agri-food company Lassonde Industries, through its US subsidiary, has agreed to acquire The Zidian Group, which operates Summer Garden Food Manufacturing.
Located in Boardman, Ohio, US, Summer Garden Food Manufacturing is a -based manufacturer and distributor of speciality food.
Under the terms of the acquisition, Lassonde will pay Zidian Group $235m upon closing.
The Canadian food company will also pay up to $45m in multiple instalments, over the next three years, contingent on certain financial targets and other conditions.
The transaction, which is not subject to a financing condition, is expected to be completed within 30 to 45 days, subject to regulatory clearance and other closing conditions.
Lassonde intends to fund the transaction through its available credit facilities.
Lassonde Industries CEO and board of directors vice-chair Nathalie Lassonde said: “The acquisition of Summer Garden supports our ambition to become a more diversified North American food and beverage company.
“Our culture and values align with those of Summer Garden, which is also a multi-generational family business, with an entrepreneurial spirit and strong commitment to its employees, customers, consumers and the communities in which it operates.
Lassonde Industries president and chief operating officer Vince Timpano said: “We are excited with the expansion of our specialty food activities by adding a product portfolio, and capabilities that delivers an immediate path to growth at attractive and accretive margins.
“It marks another important step in the execution of our long-term strategy and moves us closer to achieving our objective of $3bn in sales with further margin improvement.”
Summer Garden develops, manufactures, and markets premium sauces and condiments, including tomato and cream-based pasta sauces, BBQ sauces, dipping sauces and dressings.
The company operates out of a 10-acre campus that comprises a Green LEED-certified manufacturing facility with research and development and production capabilities.
With a portfolio of around 250 products sold through more than 20,000 locations, the company employs around 200 people.
Summer Garden offers Gia Russa and Little Italy brands in the Bronx, and G Hughes brand in the US, and also serves as a co-packer for well-known brands.
Canaccord Genuity/CG Sawaya Partners served as exclusive financial advisor to Lassonde and Brown Gibbons Lang & Co. as exclusive financial advisor to Zidian Group, on this transaction.
Summer Garden president and CEO Thomas Zidian said: “This partnership ensures our legacy will continue to thrive. We are confident it will benefit our customers through enhanced products and will offer our employees new opportunities for development and advancement.
“We also believe the values which have guided the Zidian family business from the start will continue to be the guiding principles under the stewardship of Lassonde Industries, Inc.”
