Montreal meat distributor and processor C+C Packing is set to become a new eastern arm for Vancouver food firm Premium Brands.
Premium Brands last Tuesday announced a $146 million cash-and-stock deal to buy C+C and its in-house processing arm Premier Meat Packers. The company supplies fresh and frozen meats to grocery chains, the hotel and restaurant sector and further-processors across central and Eastern Canada and the northeastern U.S.
The C+C business, which books about $250 million in annual sales, “perfectly complements our protein distribution and trading initiatives in Western Canada,” Premium Brands CEO George Paleologou said in a release.
The family-owned company’s management and “state-of-the-art” facilities “will enable us to create a unique national platform in another niche market segment,” he said.
The price tag for the deal will be $102 million in cash, 514,579 newly-issued Premium Brands common shares and consideration of up to $20 million based on “certain post-acquisition earnings targets.”
C+C, started by businessman Stanley Cons in Troy, N.Y. in 1974, moved its main base of operations to custom-built facilities in Montreal after outgrowing its New York space.
As Premium’s third major investment in Quebec, C+C is expected to “further diversify our customer base, expand our presence in Quebec and the Maritimes, and add to our product portfolio,” Paleologou said.
The deal would put C+C in a stable of food manufacturing and distribution and wholesale businesses with operations in six provinces and three U.S. states, with brands including Grimm’s, Harvest, McSweeney’s, Hempler’s, Piller’s and Freybe.
“It was very important to us to find a partner that could not only help us elevate our business to the next level but one that also shares our values,” and Premium is that partner, C+C chief operating officer Michael Cons said in Premium’s release.
C+C bills itself as able to source container loads of top-quality beef, pork, lamb, veal and poultry directly from packers in Canada, the U.S., Australia, New Zealand, Denmark and Uruguay, and able to find other meats, such as bison, ostrich and horse, for its clients when needs be.
The deal, subject to federal Competition Bureau approval and other conditions, is expected to close on or around April 15, Premium Brands said. — AGCanada.com Network