John B. Sanfilippo & Son, Inc. (Nasdaq: JBSS) (hereinafter the “Company” or “JBSS”) today announced that it has completed the acquisition of certain assets and assumption of certain liabilities of Orchard Valley Harvest, Inc. of Modesto, California (“OVH”).
Under terms of the agreement, JBSS paid $32.8 million in cash funded from excess availability in the JBSS bank credit facility. JBSS may also pay amounts of up to $10.5 million, contingent upon performance of the acquired business for the 2010 and 2011 calendar years.
OVH is one of the nation’s leading suppliers of branded and private label nut and dried fruit products in the produce category.
“The acquisition of OVH fulfills a key pillar in JBSS’ five year strategic plan by significantly increasing our presence in the produce section of food retailers,” said Jeffrey T. Sanfilippo, Chairman and CEO of JBSS. “The perimeter of the store is where retailers have been increasingly focusing their time and investment and where consumers have more frequently been purchasing fruit and nut products. 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. 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,” said Jeffrey T. Sanfilippo.
John B. Sanfilippo & Son, Inc. is one of the largest processors, packagers, marketers and distributors of shelled and in-shell nuts and nut related products in the United States. Its products are sold under a variety of private labels and under the Company's Fisher®, Sunshine Country®, Flavor Tree® and Texas Pride TM brand names.
Source: John B. Sanfilippo & Son Inc.
