November 18, 2016

Thailand’s Charoen Pokphand Foods (CPF) has agreed to acquire U.S.-based frozen food company, Bellisio Parent LLC, the third largest producer of single serve frozen entrees in the country from private equity firm, Centre Partners for just under $1.1 billion.

J.P. Morgan Chase & Co. advised CPF on the acquisition, which is scheduled to close in December of this year.

Founded in the early 1990s in Minneapolis, Minnesota, Bellisio Foods produces more than two million frozen meals per day under the Atkins, Eating Well, Michelina’s, Boston Market, Eat!, and Chili’s brands. With four production facilities located in Ohio, California, and Minnesota, the company posted sales of $668 million for the period ending September 11.

The acquisition of the company is expected to provide CPF an entry into the top food market in the world as the group’s billionaire owner, Dhanin Chearavanont seeks to expand CPF’s global reach as domestic market growth slows. However, concerns that the deal may be too expensive and may negatively affect CPF’s bottom line have caused the group’s shares to fall by 5.2 percent to a five-week low, according to Reuters.

CPF is the flagship business of Charoen Pokphand Group, the largest agro-industrial conglomerate in Southeast Asia with integrated operations within the farming, feed, and food value chains, serving three billion customers in 18 countries. However, the group has expressed its goal of diversifying its offerings to include more value-added products under its strategic plan to become the “kitchen of the world” according to the Star Tribune.

“We are excited to be part of CPF and look forward to driving the North American strategy for one of the world’s leading food companies,” said Joel Conner, chairman and CEO of Bellisio Foods in a company statement. “With Bellisio’s expertise, food quality and commitment to bring new, delicious and exciting brands to market, our management and employees are expected to play key roles within CPF.”

U.S. Frozen Food Sector is Hot

News of this deal reinforces a recent uptick of acquisitions of U.S. frozen food operations. This week GAI News reported that Ireland-based convenience food giant, Greencore Group announced it has agreed to acquire Peacock Foods from private equity firm, Charlesbank, in a $747.5 million deal that will quadruple Greencore’s U.S. business. In addition, Portland, Oregon-based private equity firm, Endeavour Capital has agreed to acquire OFD Foods, the largest diversified freeze-dried food and products company in North America for an undisclosed amount, and private equity firm, Graham Partners, announced it has agreed to acquire freeze-dried food company, Mercer Foods from private equity firms, Fontenac Co. and Lake Pacific Partners.

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Lynda Kiernan