John B. Sanfilippo & Son Inc. (JBSS), Elgin, Ill., said
it completed the acquisition of certain assets and assumption of certain
liabilities of Orchard Valley Harvest Inc. (OVH), a Modesto, Calif.-based
supplier of branded and private label nut and dried fruit products. Under the
terms of the agreement, JBSS paid $32.8 million in cash funded from excess
availability in the JBSS bank credit facility. JBSS could also pay amounts of
up to $10.5 million, contingent upon performance of the acquired business for
the 2010 and 2011 calendar years.
“The acquisition of OVH
provides JBSS with meaningful product and packaging diversity and significant
access to one of the fastest-growing channels for nut and dried fruit products,”
said Jeffrey Sanfilippo, chairman and CEO of JBSS. “According to consumer data,
as reported by a major market research firm, recent sales of nut and dried
fruit products in the produce section have grown faster than in other sections
of food retailers’ stores.”
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