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Lassonde to buy Summer Garden Foods for $235m
Rafaela Sousa

Rafaela Sousa

26 June 2024

Lassonde to buy Summer Garden Foods for $235m

Canadian agri-food company Lassonde Industries has agreed to acquire The Zidian Group, which operates Summer Garden Food Manufacturing, for $235 million.

Located in Boardman, Ohio, US, Summer Garden employs about 200 people and produces a variety of premium sauces and condiments, including pasta sauces, BBQ sauces, dipping sauces and dressings. Its 250 products are sold in over 20,000 locations under the Gia Russa, Little Italy in the Bronx and G Hughes brands.

The Canadian food company will pay up to $45 million in various instalments over the next three years if certain financial targets are met and other conditions are fulfilled.

Due to the investment's tax deductibility, the transaction is structured to provide Lassonde with a benefit of approximately $30 million in net present value.

Nathalie Lassonde, CEO and vice chair of the board of directors of Lassonde, said: “The acquisition of Summer Garden supports our ambition to become a more diversified North American food and beverage company. Growing our speciality food activities is one of Lassonde’s key strategic objectives, and we are happy to have found the right company to help us achieve this objective."

"Our culture and values align with those of Summer Garden, which is also a multi-generational family business with an entrepreneurial spirit and strong commitment to its employees, customers, consumers and the communities in which it operates. We are looking forward to closing the transaction and welcoming new talented employees to the Lassonde organisation.”

Vince Timpano, president and COO at Lassonde, added: “We are excited with the expansion of our speciality food activities by adding a product portfolio and capabilities that deliver an immediate path to growth at attractive and accretive margins. It marks another important step in the execution of our long-term strategy and moves us closer to achieving our objective of $3 billion in sales with further margin improvement."

"Through brands that hold growth potential in their categories, Summer Garden expands our core offering in pasta sauces and extends our reach into new adjacencies. We are also integrating high-quality assets into our network, including additional retort capabilities, to position ourselves as the manufacturer of choice for our customers. Finally, with cash flow generation to support future expansion, we view this transaction as the creation of a new growth platform for Lassonde.”

The transaction, not subject to a financing condition, is expected to close within 30 to 45 days, pending regulatory clearance and other conditions.

Top image: ©Summer Garden Food Manufacturing

#Lassonde #SummerGardenFoods

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