So far in 2018, food companies have been relatively active in the M&A arena, which could mean another year of strong merger growth. This week was host to a few notable deals, particularly in the manufacturing and foodservice sectors.
J. M. Smucker Co. will acquire Ainsworth Pet Nutrition for about $1.7 billion. The deal includes two manufacturing facilities located in Meadville, PA, and Frontenac, KS, and a distribution facility in Greenville, PA. In addition, the company confirmed its plans to review strategic options for its U.S. baking business, including a potential divestiture. The business includes the Pillsbury, Martha White, Hungry Jack, White Lily, and Jim Dandy brands and its manufacturing facility in Toledo, OH.
Nestle will acquire a manufacturing facility in Trenton, MO, from Conagra Brands. The acquisition includes a proprietary cooked-before-canning line along with the factory building. The facility will produce Chef-mate products, as well as certain products for Conagra, reported Area Development (March 30).
Kansas Protein Foods acquired a closed CHS Foods facility in Hutchinson, KS. The company plans to upgrade the facility and restart production of soy protein products, reported Area Development (April 2).
Land O'Frost acquired Wellshire Farms, a Swedesboro, NJ-based supplier of beef, pork and poultry. The acquisition supports Land O'Frost's strategic growth plans, which include entering new categories that complement its existing portfolio. Wellshire will use the acquisition to grow its brands and expand distribution, reported Philadelphia Business Journal (April 3).
PPC Partners acquired C.H. Guenther & Son Inc., a producer of branded and private-label food products for foodservice, quick serve restaurants, club and retail customers. The acquisition was led by PPC Partners in partnership with co-investors and management who will continue to lead the company. C.H. Guenther & Son will maintain its headquarters and technical service center in San Antonio.
Y. Hata & Co. purchased the operating and real estate assets of King Food Service. The acquisition includes King Food Service's 50,000-sq. ft. facility, reported Pacific Business News (April 2).
To see historical data on previous years of M&A growth, particularly an analysis of the extremely active 2017, view our Food Business Mergers & Acquisitions report.
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Jennette has been with The Food Institute since 2013. As Marketing Director, she is responsible for promoting all Food Institute books, seminars and webinars, as well as writing and editing the Food Institute’s annual publications, such as Food Business Mergers & Acquisitions, The Food Industry Review and The Almanac of the Canning, Freezing, Preserving Industries. Additionally, she writes for and edits the daily news update, Today in Food, and contributes to the weekly Food Institute Report. She has a background in non-profit and environmental marketing, programming and writing, and graduated from Rowan University in 2012 with a degree in Communication Studies.
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