Vancouver-based Premium Brands Holdings Corp. (TSX:PBH) has acquired a local specialty meats distributor for approximately $2.1 million.
The acquisition of Vancouver's South Seas Meats Ltd. (SSM) expands Premium Brand's offering to include specialty meats, including Halal and other ethnic foods, distributed to restaurants, hotels and specialty butcher shops in Metro Vancouver. SSM had annual sales of approximately $10 million.
Premium Brands' existing pool of food brands includes Grimm's, Harvest, McSweeney's, Bread Garden Express and Centennial Foodservice.
Premium Brands expects the transaction will generate approximately $500,000 in incremental earnings in 2010 with annualized EBITDA rising approximately $800,000 by the end of the year.
Despite the recession, the company reported a 5.7% increase in revenue to $351.6 million for the nine month period ending September 26, 2009, compared with revenue of $332.6 million in the same period in 2008.
However, the company reported a 14% decline in net profits due primarily from the costs associated with converting from an income trust in July, and an unrealized loss on foreign currency contracts. Net profit fell to $15.6 million from $18.2 million.
Premium Brand's share price range during the past week: between $13.85 and $13.90; 52-week high: $13.95; 52-week low: $6.93.