Inventure Foods Inc., a specialty food marketer and manufacturer, has signed a letter of intent to purchase substantially all of the assets of Fresh Frozen Foods LLC, a branded frozen vegetable processor.
Inventure Foods Inc., a specialty food marketer and manufacturer, has signed a letter of intent to purchase substantially all of the assets of Fresh Frozen Foods LLC, a branded frozen vegetable processor. Based in Jefferson, Ga., Fresh Frozen is a full-service processor and supplier of more than 60 varieties of frozen vegetables and fruits to retail outlets throughout the southeast United States and the Caribbean Islands. Fresh Frozen reported gross revenues of over $60 million during the most recent 12-month period.
The letter of intent, which is non-binding except for confidentiality and no-shop provisions, contemplates a purchase price of $38 million at closing, plus deferred consideration in the form of an earn-out of up to $3 million based on 2014 performance, subject to certain closing and post-closing purchase price adjustments. The transaction remains subject to completion of due diligence, agreement on a definitive purchase agreement, and other customary closing conditions. The parties anticipate that definitive documents will be signed and closed on or about Nov. 1, 2013.
“This acquisition allows Inventure to add uniquely positioned frozen vegetables to our healthy/natural portfolio for the first time, while also expanding our IQF processing capabilities for fruits and vegetables in a new geographic region,” said Terry McDaniel, CEO of Inventure Foods Inc. “Fresh Frozen has reported 15% average annual revenue growth over the last 3 years. The unique location of Fresh Frozen’s processing facility in Thomasville, Ga., will provide year-round freezing operations, which increases our geographic footprint. Additionally, both Fresh Frozen operations allow us to leverage our business and support future growth.”