Hillshire Brands to acquire Van’s Natural Foods

Hillshire Brands has signed an agreement to acquire Van’s Natural Foods from US-based private equity firm Catterton Partners for around $165m.

Based in Phoenix, Van’s produces frozen breakfast and snack foods such as waffles, pancakes, cereal, crackers and snack bars.

Its frozen breakfast and snack foods are available at grocery stores, mass merchandise stores and natural food retailers nationwide.

Van’s is expected to report net revenues of approximately $60m in calendar year 2014.

Hillshire Brands president and CEO Sean Connolly said that the Van’s brand is a terrific addition to the company’s portfolio.

"Not only does it expand our presence in the frozen category, it also gives us a proven health and wellness brand with extendability beyond frozen," Connolly added.

Van’s Natural Foods CEO Eric Kufel said that the firm’s positioning in the large and growing wellness consumer lifestyle segment complements Hillshire Brands’ product portfolio.

"We are pleased to have worked with Catterton, which helped drive our significant growth and market expansion into multiple new categories," Kufel added.

Following the acquisition, Hillshire will include Van’s in its retail segment, pairing it with leading brands such as Jimmy Dean, Hillshire Farm and Ball Park.

Van’s Natural Foods’ management will continue to lead the business. The transaction, which is expected to be completed in May 2014, is subject to regulatory clearance.

The Hillshire Brands Company comprises brands such as Jimmy Dean, Ball Park, Hillshire Farm, State Fair, Sara Lee frozen bakery and Chef Pierre pies as well as artisanal brands like Aidells, Gallo Salame and Golden Island premium jerky.