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FORAY INTO BIGGEST FOOD MARKET

Thai agro business giant CPF buys Bellisio Parent for $1.07bn

BANGKOK, November 19, 2016

Thailand's Charoen Pokphand Foods (CPF) has entered into a deal to acquire leading US frozen food company Bellisio Parent for $1.07 billion, thus paving way for its entry into the world's largest food market.

A leading agro-industrial and food conglomerate in the Asia Pacific region, CPF operates in both the livestock (swine, broilers, layers, and ducks) and aquaculture (shrimp and fish) businesses, said a statement from the Thai firm.

The transaction, subject to customary closing conditions and regulatory approvals, is expected to close within 180 days, it added.

On the acquisition, CEO Adirek Sripratak said: "This transaction marks the first step of our entry into the world's largest food market, where we see significant growth and synergy opportunities."

"This acquisition is in line with CPF’s strategic direction to expand into high potential market. After the transaction, CPF’s revenue contribution from Food business will rise," he added.

"We believe that through leveraging our combined strengths at CPF and Bellisio group, we can bring greater variety of products particularly Asian food products, to US consumers as well as export our products globally," said Sripratak.  

Established in 1990, Bellisio group is the third largest producer and distributor of single serve frozen entrees in the US by unit share, with well-known household brands such as, Michelina’s, Boston Market, Chili’s, and Atkins.

To complement existing brands, they have also recently introduced the EatingWell and EAT! product lines, focused on balanced food solutions that promote healthy lifestyles.

Joel Conner, the chairman and chief exective of Bellisio group, said: "We are deeply grateful to Centre Partners for their support and guidance since partnering with us five years ago. At the same time, we are also extremely excited to be part of the CPF family and share their vision of being the ‘Kitchen of the World’."

"I believe that our partnership with CPF will allow us to propel Bellisio through its next phase of growth," he stated.

Bellisio group has deep strategic relationships with leading US retailers with over 50,000 distribution points.

Through its strategically-located, best-in-class 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 last twelve months ending September 2016, Bellisio group generated adjusted net sales of $668 million and adjusted ebitda of $82 million.

Outside the US, Bellisio group is also the leader in the single serve frozen entrees market in Canada. The group has a total of 4 facilities located in Ohio, California and Minnesota.

"We are thrilled to have the opportunity to work with Joel and his team to bring Bellisio to its next phase," said Sripratak.

JP Morgan acted as exclusive financial advisor, and Davis Polk & Wardwell LLP acted as legal counsel, to CPF’s for the transaction.-TradeArabia News Service




Tags: Thailand | Food |

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