US health food manufacturer Smart Balance has struck a US$66.3m deal to acquire Canadian gluten-free food producer Glutino Food Group.
Smart Balance has purchased 100% of the equity interest of Importations De-Ro-Ma, the parent company of Quebec-based Glutino, from Canadian investment firm Claridge.
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The acquisition was funded from Smart Balance’s existing credit facility and its long-term debt position, it said today (4 August).
Glutino is a manufacturer of gluten-free foods sold under the Glutino and Gluten Free Pantry brands. It also produces gluten-free breads for UK-based Genius Foods under licence.
The company had annual sales of $53.9m during its fiscal year and has increased its sales around 30% annually over the past three years, according to Smart Balance.
“We are truly excited about adding the Glutino Food Group to our portfolio of health and wellness brands,” said Smart Balance chairman and CEO Stephen Hughes. “The demand for gluten-free products is significant and is now a category of over $2bn in retail sales. We are bullish on the continuation of the category’s 10% compound annual growth rate.”
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By GlobalDataAs of the close of the acquisition, Smart Balance’s long-term debt is estimated to be around $115m. The addition of Glutino to Smart Balance’s portfolio is expected to be accretive to earnings in the next twelve months.
Check back later for further insight into the acquisition.
