Romana Food signs LoI to acquire Italian firm Michelis

US-based Romana Food Brands (Romana) has signed a binding letter of intent (LoI) to acquire Italy’s speciality artisanal producer Michelis Egidio SNC di Michelis CMM (Michelis) for an undisclosed price.

According to the letter of intent, Romana will proceed with a formal due-diligence and is planning to sign a definitive agreement in the next month.

The US firm expects to close the acquisition on or before 30 April.

Romana chairman Morrie Fogelbaum said: “The integration of Michelis-branded products within our distribution channels makes this a perfect match.

“Our objective of becoming the new Italian food leader is becoming a reality thanks to our Mergers and Acquisitions strategy, bringing one acquisition and integration at a time.

“This brings us a step closer to our target of achieving $100 million in revenue for 2018.”

By acquiring Michelis, Romana expects to add $19m in annual revenue to the corporation.

Founded in 1919, Michelis has been engaged in the production of fresh, dried and frozen pasta, baked goods, and a line of desserts.

Michelis noted that it is also developing a new technology for food traceability and control that will address the ever-growing risks associated with health matters and the protection of brand trademarks.