Livingstone’s Consumer sector team has advised Belmont Meat Products Ltd on the sale of the company to Premium Brands Holding Corporation. Under the terms of the agreement, Premium Brands has acquired 100% of the ownership interests in Belmont for $49.2m in cash and $0.8m in shares of Premium Brands. Livingstone advised the shareholders of Belmont, including Summer Street Capital Partners.
Founded in 1966 and headquartered in Toronto, Ontario, Belmont produces a wide variety of customised premium burgers for retail and foodservice customers across Canada and, increasingly, in the US Retail sector. Belmont is one of the leading manufacturers of burger patties in Canada, generating annual sales of approximately $120m. Under Summer Street’s nine-year ownership, Belmont nearly doubled revenue through strategic improvements and value-enhancing initiatives that repositioned the company for growth and market leadership.
Premium Brands is one of the Canada’s leading specialty food manufacturers and distributors, with more than 5,000 employees across 43 manufacturing and distribution facilities in Canada and the US.
Paul Roach, President and Chief Executive Officer at Belmont, commented: “We are excited to become a part of Premium Brands, and leverage their supply and distribution channel partnerships to expand our product portfolio and further penetrate the US. and other international markets.”
George Paleologou, President and CEO at Premium Brands, added: “We are not only very excited about Belmont’s business and the potential for it to grow under the Premium Brands umbrella, but also the role it will play in creating value in several of our other businesses. In particular, we expect to generate significant synergies between Belmont’s business and our Centennial Foodservice business’ recently announced initiative to expand into the Ontario market.”
Michael Petri, Partner at Summer Street, said: “We achieved great successes at Belmont, in partnership with the management team, and know Premium Brands will continue supporting Belmont’s market leading position. Livingstone’s customised process secured the ideal long-term home for Belmont and resulted in an attractive, expedited outcome with minimal business disruption.”
Ryan Buckley, Managing Director at Livingstone, concluded: “Premium Brands’ acquisition of Belmont is another deal in a long list of transactions involving the successful sale of a niche, lower mid-market business to a global strategic buyer. Belmont also marks Livingstone’s 11th transaction representing a US-based private equity client in the last 12 months.”
Belmont marks Livingstone’s 57th transaction closed year-to-date and adds to the firm’s extensive track-record of completing transactions across its core sectors of Business Services, Consumer, Healthcare, Industrial, and Media &Technology.