Premium Brands Holdings Corp., a leading producer, marketer and distributor of branded specialty food products, announced today that it has acquired a 100% interest in Ontario-based Skilcor Food Products. Skilcor is one of Canada’s leading manufacturers of cooked back ribs and other unique protein products. It has annual sales of approximately $27 million and operates out of a specially designed 34,000 square foot facility that was built in 2006.
“Skilcor further strengthens our rapidly growing presence in central Canada’s protein manufacturing and protein distribution segments. It will not only expand our portfolio of products but will also give us specialized production capacity that will enable us to provide customers with premium quality differentiated protein solutions in the high growth ready-to-eat product category,” says George Paleologou, president and CEO of Premium Brands. “In addition, Skilcor’s experienced and talented management team will further enhance the depth of our Protein Platform in central Canada.”
“I have no doubt that Premium Brands is the right partner for us, our company and our people,” says Deborah Kinzinger, founder and chair of Skilcor. “I am very proud of our team, our culture and our products and of how much we have accomplished since Skilcor was founded back in 1969. … We are looking forward to working with the other companies under the Premium Brands umbrella to help accelerate our growth across Canada and into the U.S.”
The transaction will be funded through Premium Brands’ existing bank facilities and is expected to be immediately accretive to its annual earnings per share and free cash flow per share.
The Skilcor acquisition follows the Sept. 19 announcement that Premium Brands has acquired 100% of the shares of Leadbetter Foods Inc. Leadbetter, also based in Ontario, has annual sales of approximately $55 million and is one of Ontario’s leading manufacturers of specialty bacon, fresh and frozen burgers and portion-cut steaks. It operates two production facilities, including a modern 47,000-square foot custom designed bacon operation built in 2012, both of which are located in Orillia, Ontario.