Canadian food maker Premium Brands is to acquire Ontario-based Piller Sausages & Delicatessens Limited.
The deal has been struck to buy the maker of specialty European deli meats for C$73.7m (US$75.2m) in cash and 1,968,750 of Premium Brands shares.
Piller’s has annual sales of approximately C$180m and over 600 employees. It is currently owned and operated by the Huber family who founded it in 1957. The purchase is expected to close later this month and is subject to obtaining clearance for the deal from the Canadian Competition Bureau.
“This transaction will create a national deli meats platform that will feature two of Canada’s most respected deli brands: Grimm’s in the west and Piller’s in the east,” Premium Brands president and CEO George Paleologou said. “Piller’s will be our third major investment in Ontario in the last 12 months and will provide us with state-of-the-art production capabilities, industry leading product research and development expertise and a proven management team that has been able to generate consistent profitable growth for many years.”
Piller’s CEO Willy Huber Jr said the company was “very excited” to join Premium Brands and its “entrepreneurial culture and focus on quality are a perfect fit” for his family’s business.
He added: “I have no doubt that the combination of our businesses will result in a number of exciting top- and bottom-line growth opportunities.”
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataIn addition to the cash and shares handed over for the acquisition, the sale price it will be increased by up to $10m if Piller’s is able to achieve certain profit targets over the next two years. This additional consideration, if applicable, would be payable 26 months after the closing of the transaction.
The cash portion of the purchase price will be reduced to the extent that Premium Brands assumes any funded debt and will also be subject to adjustment if Piller’s net working capital when the deal is completed is above or below a defined normalised level.
Included in the transaction is around 24 acres of industrial land that can be used for future expansion of Piller’s business.
Piller’s has an annual EBITDA run rate of around C$15m, Premium Brands said. Wiithin the next two years, Premium Brands expects Piller’s EBITDA to exceed $20m as growth and cost synergies are realised. The transaction is expected to be immediately accretive to both Premium Brands’ earnings per share and free cash flow per share.