Smithfield, Va.-based meat giant Smithfield Foods is adding to its stable of deli product offerings with the acquisition of an 80% interest in Stefano Foods, a producer of Italian convenience foods, including stuffed breads (stromboli), calzones, stuffed pizza rings and pizzas.
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Smithfield Foods acquired the 80% stake in Stefano’s for five and one-half times projected EBITDA (earnings before interest, taxes, depreciation and amortization). Stefano’s management has chosen to retain a 20% interest and remained actively involved in the business.
Stefano’s products also will be marketed through the Smithfield Deli Group, formed in February to market all deli meat brands of Smithfield Foods’ independent operating companies to the retail deli trade.
“The acquisition of Stefano’s is an important first step in broadening our deli product line,” said C. Larry Pope, president and COO of Smithfield Foods. “Stefano’s line of convenience foods fits perfectly with our strategy of focusing on the value-added, high-margin segment of the business.”
Based in Charlotte, North Carolina, Stefano Foods has annual sales of US$22m. The company sells its products through many of the top national supermarket chains and club stores.
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By GlobalData“We are excited about joining the Smithfield Foods family,” said Enrico Piraino, Stefano’s VP, sales and marketing. “Smithfield Foods has the resources and skills to help us expand our business at an extremely fast pace.”
