Inventure Buying Fresh Frozen Foods for $38M
PHOENIX (AP) — Inventure Foods Inc. said Tuesday that it plans to buy frozen vegetable processor Fresh Frozen Foods LLC for $38 million.
The deal will add vegetables to Inventure's portfolio and expand its geographic reach.
Inventure Foods, based in Phoenix, sells specialty food under brands such as Willamette Valley Fruit Co., T.G.I. Friday's, Nathan's Famous and Vidalia Brands.
Frozen Foods, based in Jefferson, Ga., is a family owned 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. It reported revenue of more than $60 million during its most recent 12-month period.
Inventure has signed a non-binding letter of intent to buy the company for $38 million plus up to an extra $3 million based on 2014 results.
The companies expect to close the deal Nov. 1.
Inventure will fund the purchase with a new senior syndicated credit facility that will be funded prior to closing. It expects the deal will add to earnings immediately.
Shares of Inventure jumped $1.02, or nearly 11 percent, to $10.54 by midmorning.