February 24, 2017

France-based global vegetable producer and marketer, Bonduelle, has agreed to acquire California-based Ready Pac Foods – the market leader in single serve salads and producer of fresh-cut fruit and mixed vegetables, from H.I.G. Capital. Bonduelle states that the financial terms of the deal will be released on March 2 when the company announces its half-year results.

Under the terms of the deal Bonduelle will acquire all of Ready Pac’s common stock and will operate the business as a wholly-owned subsidiary.

Established in 1853, Bonduelle owns four brands of canned, frozen, and fresh vegetables which are grown on more than 128,000 hectares – either by contracted farmers or by the company itself. With 54 global industrial sites, it’s ready-to-eat vegetables are sold in more than 100 countries, generating more than $2 billion in revenue.

Although Bonduelle already has operations across North America, the transaction is expected to significantly expand the company’s presence in the U.S. market, where it has had a limited presence. The deal is also a strategic move advancing the company’s VegeGo! 2025 target of becoming the “world reference in ‘well living’ through vegetable products, reports Prepared Foods.

The acquisition of Ready Pac will bring with it four production facilities located in Irwindale, California; Jackson, Georgia; Florence, New Jersey; and Swedesboro, New Jersey, along with 3,500 employees and a sizeable customer base. The business, which generates $800 million in revenue, will be Bonduelle’s fifth business unit, and will join Bonduelle’s other major North American acquisitions – Aliments Carrière, Canada acquired in 2007, and Allens, USA acquired in 2012.

Over its fifty years of business, Ready Pac has seen significant growth and has gained a reputation for being an innovation leader in the fresh food industry through its development of the “pillow pack” packaging system that enabled the importation of European lettuce blends into the U.S., and the “triple wash system,” which has been adopted as an industry standard practice. The company also created a new food category – developing the first single-serve salad meal under the brand name, Bistro Bowl.

“We were impressed with the strength of Ready Pac Foods operational excellence, commitment to innovation, and talented management team,” said Bonduelle Chairman and Chief Executive Officer Christophe Bonduelle. “Our interest in Ready Pac Foods was not only because of its attractive product segment and rapid growth, but the value the company delivers to their customers and their committed workforce.”

It was made know early last year that Ready Pac was on the market, leveraging its position as a key innovator and player in the rapidly growing convenience and fresh food segments. PepsiCo, Hain Celestial, Hormel, WhileWave, and Campbell were all considered to be top contenders.

After the deal’s expected closing at the end of March, Tony Sarsam, Ready Pac Foods’ chief executive, will remain in his position along with the balance of the leadership team.

“This is a fantastic new chapter for our 3,500 associates and a great step forward,” said Sarsam. “We are thrilled with this investment in our company strategy, and know Ready Pac Foods is going to be right at home with the Bonduelle family of companies.”

-Lynda Kiernan

Lynda Kiernan is Editor with GAI Media and daily contributor to GAI News. If you would like to submit a contribution for consideration please contact Ms. Kiernan at lkiernan@globalaginvesting.com