US group Pinnacle Foods has entered into an agreement to buy a frozen warehouse and vegetable packaging facility from Ryder Integrated Logistics to support growth in its Birds Eye brand.
Pinnacle is to pay US$37.5m for the factory in Beaver Dam, Wisconsin. It said the acquisition will be funded “with cash on hand” and will provide “incremental capacity beginning in early 2018”, according to a 7 August filing from the New Jersey-based company with the US Securities and Exchange Commission.
Last month, the company reported second-quarter sales fell 1.6% from a year earlier, partly as a result of a product exit and a recall surrounding its Aunt Jemima range due to the possibility of Listeria contamination. However, it reported “double-digit” growth in sales of its Birds Eye vegetables and meals.
Integration of the Beaver Dam site into Pinnacle’s supply chain is expected to begin in the second half of this year, the SEC filing said.
The filing went on to say “the facility is also expected to drive productivity and margin enhancement, consistent with the network optimization initiatives in the company’s long-term strategic plan, beginning in the second half of 2018”.
See Also:
Ryder provides global supply-chain consulting.
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 GlobalData