US food company Monterey Pasta has announced that it has acquired an 80% interest in CIBO Naturals, a Seattle, Washington-based manufacturer of premium sauces and spreads.

Monterey Pasta said it paid US$6.0m in cash for the 80% stake and that it also loaned CIBO $1.0m. The acquisition agreement provides for the purchase of the remaining 20% ownership after four years.

"CIBO Naturals represents a valuable addition to Monterey Pasta and is expected be accretive to earnings," said Jim Williams, Monterey Pasta's president and CEO.

"It fits well with our growth strategy in premium refrigerated foods. CIBO Naturals has unique, high quality products and has developed a strong position in club, supermarket deli and specialty store channels. We see great growth potential in the CIBO Naturals brand, both in expanded distribution and in new products," Williams added.