Indiana Packers Corporation to buy Specialty Foods Group
The financial details of the deal were not disclosed, but the acquisition agreement is subject to regulatory approval. It also requires approval of the equity holders of SFG, and certain other closing conditions. The sale is expected to close in the third quarter of 2018.
IPC said the deal would strengthen its foundation for growth and position it to leverage “valuable synergies” relating to raw material utilisation, manufacturing, and sales and marketing capabilities.
The company is headquartered in Delphi, Indiana and also operates pork processing facilities in Holland, Michigan and Frankfort, Indiana. It manufactures and distributes a variety of products such as fresh pork, bacon and premium processed hams, under the Indiana Kitchen brand and private-label brands.
SFG is an independent producer and marketer of premium branded and private-label processed meat products. It is the manufacturer and distributor of Kentucky Legend, the boneless ham brand in grocery retail in the US.
It also sells a wide variety of products, such as frankfurters, hams, turkey, bacon, luncheon meats and delicatessen meats. These are sold under brands including Field, Fischer’s, Mickelberry’s, Kentucky Legend and Kentuckian Gold.
“We’re looking for ways to grow our business and adding SFG is strategically on-point,” said Russ Yearwood, president and chief operating officer of IPC.
“They are a company with successful brands, outstanding people and smart business strategies. This acquisition will improve our position in a very competitive global protein market.”
IPC is a subsidiary of Mitsubishi Corporation, which said that by acquiring SFG, IPC aims to expand its processed meats business and further strengthen the integration of its product chain.
Mitsubishi added that pork had already secured its position, along with chicken, as an essential protein source in the US as well as in Asia, Latin America and other regions. It said it expected to continue to see solid growth, with the US remaining one of the main consumer markets for pork.
