Pork products firm IPC acquires Specialty Foods Group

Pork products company Indiana Packers (IPC) has completed its acquisition of Specialty Foods Group (SFG) from Specialty Foods Group Income Fund.

SFG manufactures and distributes Kentucky Legend premium boneless ham products in grocery retail across the US.

With the sale of SFG, the fund is expected to receive initial net cash proceeds of nearly $28.3m, and may also receive up to $2.2m from escrowed funds at varying intervals until 2020.

In August, IPC entered a definitive agreement to acquire SFG.

With completion of the acquisition, IPC intends to leverage synergies relating to raw material use, manufacturing and sales, as well as marketing capabilities.

When signing the agreement IPC president and chief operating officer Russ Yearwood said: “We’re looking for ways to grow our business and adding SFG is strategically on-point.

“They’re a company with successful brands, outstanding people and smart business strategies. This acquisition will improve our position in a very competitive global protein market.”

IPC operates pork processing facilities throughout Indian in Holland, Michigan City, and Frankfort.

Proceeds received by the fund will be converted to Canadian dollars and held in trust on an interest-bearing basis.

After deducting expenses such as taxes, fees and other related costs, the amounts held in trust can be distributed to the fund’s unitholders in accordance with the SFG plan of arrangement approved by Ontario Superior Court of Justice in February 2017.