Inventure Foods completes acquisition of vegetable processor Fresh Frozen Foods

Inventure Foods, a US-based speciality food marketer and manufacturer, has completed the acquisition of Fresh Frozen Foods, a full-service processor and supplier of frozen vegetables, in a $38.37m deal.

Fresh Frozen, headquartered in Georgia, offers more than 60 varieties of frozen vegetables and fruits to retail outlets across the south-east US and the Caribbean Islands.

In the most recent 12-month period, the company posted gross revenues of more than $60m.

Inventure stated that the transaction would be accretive to its earnings 2014.

To fund this transaction, the company has entered into a new $60m senior secured term loan and a new $30m senior secured revolving line of credit with a group of lenders led by the US Bank National Association, subject to a credit agreement, security agreement and certain customary ancillary agreements.

The secured funds will also be used to repay the company’s two existing equipment term loans totalling $8.4m and the revolving credit line totalling $17.6m, as of 8 November 2013.

Inventure Foods CEO Terry McDaniel said, "Fresh Frozen is a perfect strategic fit in our healthy/natural portfolio, allowing us to not only diversify into frozen vegetables, but also to meet growing consumer demand for our frozen fruit products."

"Fresh Frozen along with our current brands strengthens our position in the ‘Better for You’ section of the frozen food aisle," McDaniel added.

The letter of intent for the acquisition of Fresh Frozen Foods assets was signed by Inventure in September.

The company said at the time that Fresh Frozen’s processing facility in Thomasville, Georgia, would provide year-round freezing operations, increasing the company’s geographic footprint and allowing it to leverage its business and support future growth.

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Image: The deal allows Inventure to add frozen vegetables to its portfolio. Photo courtesy of Volkan Ulusoy.