US nut maker John B. Sanfilippo & Son is to acquire nut and dried fruit producer Orchard Valley Harvest (OVH) for US$29m.
The deal, announced yesterday (5 May), includes an additional future consideration of up to $10.5m, which is depends upon the performance of OVH for the 2010 and 2011 calendar years.
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The acquisition will be funded from excess availability in the firm’s bank credit facility, and is expected to close prior to the completion of the company’s current fiscal year ending 24 June.
“The acquisition of OVH fulfills a key pillar in JBSS’ five year strategic plan by significantly increasing our presence in the produce section of food retailers,” said Jeffrey T. Sanfilippo, chairman and CEO of JBSS. “It provides JBSS with meaningful product and packaging diversity and significant access to one of the fastest growing channels for nut and dried fruit products.”
The firm said it expects the acquisition to add around $50m to $60m in incremental net sales on an annual basis.
“The OVH management team is thrilled to become part of the JBSS family,” said Steve Kerr, president of OVH. “We are excited about the opportunity to leverage JBSS’ scale and position as the leading singularly focused provider of nut and nut-related solutions to expand OVH’s market reach in produce sections throughout the United States.”
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