Bellisio Foods to Buy Frozen Foods Co. in $80M Deal
Bellisio Foods, Inc., announced Wednesday that it has entered into a definitive agreement to acquire Vernon, California-based Overhill Farms, Inc., for $5 per share, a price that values Overhill Farms at approximately $80 million.
Minneapolis-based Bellisio Foods is one of North America’s largest producers of frozen entrees and snacks. It offers products under brands such as Michelina's, Boston Market, and other private labels.
Overhill Farms provides branded and private-label frozen food products for businesses in the foodservice, retail, and airline industries. Its clients include Target Corporation, American Airlines, Inc., and Pinnacle Foods Group, LLC, among others.
Bellisio Foods’ acquisition of Overhill Farms will expand the manufacturer and distributor’s branded and private-label frozen foods as well as its clientele.
“The addition of Overhill Farms’ manufacturing capabilities and its customer and brand portfolios align perfectly with Bellisio’s growth strategies to expand our customer base, strengthen our brand portfolio, invest in high-growth platforms, and leverage our manufacturing disciplines to generate strong returns,” Joel Conner, Bellisio’s chairman and CEO, said in a statement.
New York-based private equity firm Centre Partners Management, LLC, purchased Bellisio Foods in 2011. Privately held Bellisio currently employs 1,339 individuals and operates out of three Minnesota facilities in Minneapolis (where its headquarters are located), Lakeville, and Duluth, as well as a main manufacturing plant in Jackson, Ohio.
Overhill Farms reported net revenue of $194.4 million for the 2012 fiscal year, which ended September 30 that represents a 14.9 percent increase from the previous fiscal year, which ended October 2, 2011.
Founded in 1968, Overhill Farms operates out of two facilities near Los Angeles and employs 650 individuals. Conner told Twin Cities Business that Bellisio Foods plans to retain some Overhill Farms employees but would not disclose how many.
Whether Overhill Farms will retain its name after the acquisition is still under consideration, Conner told Twin Cities Business.
The deal, expected to close by the end of July, is subject to approval from Overhill Farms shareholders, regulatory approvals, and other customary closing conditions.
Last year, Twin Cities Business highlighted Bellisio Foods founder Jeno Paulucci’s 21-year career with the company, as well as the food manufacturing company’s growth. Click here to read the feature story.