The deal, arranged through Premium Brands’ US subsidiary, the Hempler Foods Group, includes Fletcher’s US businesses and production equipment, but not its meatpacking plant in Algona, Washington.
Fletcher’s, which is currently owned by Sofina Foods, has annual sales of around $17m with its premium bacon and sausages sold through retail and foodservice channels across the Pacific north-west.
Premium Brands expects the deal, which is subject to regulatory approval, to immediately impact growth, earnings per share and free cash flow.
'Iconic' meat brand
The acquisition will see Hempler’s move its meat processing and production to Fletcher’s manufacturing plants based in the Washington cities of Ferndale and Kent.
George Paleologou, president and chief executive of Premium Brands, predicted that the transaction would stimulate revenue growth.
He also expressed excitement at the prospect of Premium Brands controlling three of the Pacific north-west’s “most iconic speciality packaged meat brands” in Hempler’s, Fletcher’s and sausage brand Isernio’s, which Premium Brands acquired in July 2015.
Stephen Bates, president of Hempler’s and a former employee at Fletcher’s, said he was “very excited” by the chance to link up with the company once again to grow and develop the business.
Fletcher’s Fine Foods was founded by a predecessor of Premium Brands in 1985, but was sold to Sofina Foods as part of a larger transaction in 2004.
The deal is expected to complete next month.