US: Petfood Manufacturer Announces USD 239 Million Acquisition.
"With this transaction, we are adding one of North America's leading private label pet food manufacturers to our portfolio and further strengthening our company. Menu is a great company with an excellent management team and employees that are among the best in our industry, and we look forward to welcoming them into the Simmons family," said Mark Simmons, Chairman of Simmons Foods, Inc. and affiliates.
"Our businesses share a similar commitment to operational excellence, quality, customer service and innovation and through this transaction we expect to offer our customers an even stronger platform dedicated to helping them grow their businesses," said Todd Simmons, Simmons Pet Food's Chief Operating Officer.
Under the agreement, Simmons Pet Food will acquire Menu Foods Limited for approximately $239 million, including assumption of existing debt. The transaction is subject to the approval of the Fund's unitholders by two-thirds of the votes cast at a special meeting, the receipt of regulatory approvals, and other customary closing conditions.
The proposed sale of Menu Foods Limited is the outcome of a previously announced strategic review process by the Fund's board of trustees under the supervision of Menu Food GenPar Limited's Strategic Alternatives Committee.
"We have conducted an extensive review of the strategic alternatives available to the Fund and believe this transaction provides our unitholders with an attractive price for the business and a material premium to the recent trading levels of the units," said C. Ian Ross, Chairman of the board at Menu Foods Income Fund.
About Menu Foods Income Fund
The Fund is the indirect owner of Menu Foods Limited, a leading North American private-label/contract-manufacturer of wet pet food products.
Based in Arkansas, the Simmons family of companies represents a highly diversified agricultural-based organization with annual sales of over US$1 billion. Simmons' businesses include Simmons Pet Food, a manufacturer of wet and dry pet food serving customers across the United States. Simmons' businesses also include a vertically integrated chicken business that focuses on national restaurants and retail mass merchandisers as well as Simmons Feed Ingredients, a quality leader in dry feed ingredients for dairy, cattle, aquaculture and pet food manufacturers.
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|Publication:||Feedinfo News Service|
|Date:||Aug 9, 2010|
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