Packaged food firm, Pinnacle Foods has announced the acquisition of a frozen warehouse and vegetable packaging facility from Ryder Integrated Logistics for $37.5 million.
The company, which makes Birds Eye frozen vegetables, said the acquisition will be funded with cash on hand and expects to begin integration of the facility into its supply chain network in the second half of this year.
The facility located in Beaver Dam, Wisconsin is expected to drive productivity and margin enhancement, Pinnacle said, and be consistent with the network optimisation initiatives in the company’s long-term strategic plan, which begin in the second half of next year.
Pinnacle Foods also posted double-digit sales growth for the second quarter of 2017, as results showed strength with the launch of new product lines, including organic and superfood blends.
However, net earnings overall in the second quarter decreased 59% to $18.6 million from the same period last year, which the company said was down to a recall and exit of certain Aunt Jemima products.
The move comes after Conagra Brands made an ‘approach’ for packaged food firm Pinnacle, earlier this year.
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