CP Foods has entered into a binding agreement to take over Bellisio Parent, LLC (Bellisio) for $1.07bn. The deal, still subject to regulatory approval, is expected to close within the next six months.
The billion-dollar deal marks CP Foods’ first foray into the US – one of the world’s largest food markets. The announcement on Thursday 17 November, comes days after the business confirmed it was planning investment in downstream processing and value-added food via mergers and acquisitions.
CP Foods said the deal with Bellisio would provide “opportunities” for expansion in the US and growth in exports.
‘Significant growth’
“We are thrilled to have the opportunity to work with Joel and his team to bring Bellisio to its next phase,” said CP Foods CEO Adirek Sripratak.
“This transaction marks the first step of our entry into the world’s largest food market, where we see significant growth and synergy opportunities. We believe that through leveraging our combined strengths at CP Foods and Bellisio group, we can bring a greater variety of products – particularly Asian food products – to US consumers as well as export our products globally.”
Sripratak added that revenues derived from food operations would rise after the transaction had been completed.
Bellisio ‘extremly excited’
Bellisio generated net sales of $668m during the last 12 months up to the end of September 2016. With four facilities across Ohio, California and Minnesota, Bellisio can transport products to half of the US in 24 hours and nationwide in two days.
The business was established in 1990 and CP Foods claimed it was the third-largest producer of single-serve frozen food entrées in the US. The business is also operational in Canada.
Bellisio was acquired by private equity firm Centre Partners in 2011.
“We are deeply grateful to Centre Partners for their support and guidance since partnering with us five years ago,” said Bellisio Foods chairman and CEO Joel Conner.
“At the same time, we are also extremely excited to be part of the CP Foods family and share their vision of being the ‘Kitchen of the World’. I believe that our partnership with CP Foods will allow us to propel Bellisio through its next phase of growth.”