Charoen Pokphand Foods Plc (CPF), the SET-listed flagship of agro-business giant Charoen Pokphand Group, yesterday announced the successful completion of its acquisition of Bellisio Foods, one of America's largest and fastest-growing frozen food firms.
CPF has acquired all of the outstanding interests in Bellisio from Centre Partners Management for a total consideration of US$1.08 billion.
Upon completion of the transaction, Bellisio and its subsidiaries (together referred to as Bellisio Group) will become subsidiaries of CPF.
CPF chief executive Adirek Sripratak said the transaction represents a breakthrough for CPF into the world's largest food market and is a significant milestone in the company's journey towards becoming the "kitchen of the world".
The partnership will also enable the company to gain access to the North American market.
The existing management team and wider employee base will remain in place following the shift in ownership, with Bellisio continuing to be strongly committed to its existing customers and suppliers as well as Minneapolis, where it will continue to be headquartered, and all regions where it has operations.
Founded in 1990, Bellisio Group is the third-largest maker and distributor of single-serve frozen entrees in the US, with household brands such as Michelina's, Boston Market, Chili's and Atkins.
Bellisio Group has over 50,000 distribution points in the US. Through its central production facility in Jackson, Ohio, Bellisio is able to distribute its products to more than half of the US within 24 hours and nationwide within 48 hours.
For the 12 months that ended in September, Bellisio Group posted adjusted net sales of $668 million and adjusted earnings before interest, tax, depreciation and amortisation (ebitda) of $82 million.
As of November, Bellisio had capital worth $160 million.
CPF expects its revenues to grow by at least 10% next year to about 500 billion baht, with ebitda to exceed 9% anticipated for this year.
CPF shares closed yesterday on the Stock Exchange of Thailand at 28.75 baht, up 75 satang, in trade worth 403 million baht.