- Agri-food stock Lassonde Industries Inc. (TSX:LAS.A) signed a deal to acquire Summer Garden Food Manufacturing for $235 million
- Summer Garden is a manufacturer and distributor of specialty food, including sauces and condiments that generated US$148 million in sales for the 12-months ending in May 2024
- Lassonde could pay a further US$45 million over the next three years, should certain financial targets and other conditions be achieved
- Lassonde Industries Inc. (TSX:LAS.A) last traded at C$140.14 per share
Agri-food stock Lassonde Industries Inc. (TSX:LAS.A) signed a deal to acquire Summer Garden Food Manufacturing for $235.0 million.
The food and beverage company expects this acquisition’s internal rate of return will be higher than its weighted average cost of capital. It is acquiring Zidian Group in the deal, the owner of Summer Garden.
Located in Boardman, Ohio, Summer Garden is a manufacturer and distributor of specialty food, including sauces and condiments. Its portfolio consists of around 250 products sold through more than 20,000 locations. For the 12 months ending in May 2024, Summer Garden generated US$148.0 million in sales and adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of US$27.9 million.
“The acquisition of Summer Garden supports our ambition to become a more diversified North American food and beverage company,” Nathalie Lassonde, Lassonde’s CEO and board of directors vice-chair, said in a news release. “Growing our specialty food activities is one of Lassonde’s key strategic objectives and we are happy to have found the right company to help us achieve this objective. Our culture and values align with those of Summer Garden, which is also a multi-generational family business, with an entrepreneurial spirit and strong commitment to its employees, customers, consumers and the communities in which it operates. We are looking forward to closing the transaction and welcoming new talented employees to the Lassonde organization.”
Lassonde could pay a further US$45 million over the next three years, should certain financial targets and other conditions be achieved. The transaction structure would also allow the company to generate a benefit amounting to US$30 million, on a net present value basis, related to the investment’s tax deductibility.
Lassonde Industries Inc. develops, manufactures, and markets a range of ready-to-drink juices and drinks, fruit-based snacks in the form of bars and bites as well as frozen juice concentrates in North America.
Lassonde Industries Inc. (TSX:LAS.A) last traded at C$140.14 per share. The stock was down 3.35 per cent this past week, but has gained 33.06 per cent since this time, last year.
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(Top image: Lassonde Industries Inc.)
