Bonduelle completes Ready Pac acquisition

Bonduelle has completed the acquisition of Ready Pac Foods, a U.S. producer of convenience fresh meal solutions, salads and fresh cut produce, for $409 million, a multiple of about 11 times adjusted EBITDA estimated for FY 2016-2017.

The acquisition will benefit Ready Pac Foods through increased investment and extended geographic reach, according to Bonduelle. The company also expects an increased need for additional employees with the larger footprint and expanded distribution this acquisition will bring.

With nearly a 50-year history, Ready Pac Foods has four production facilities located in the U.S. in Irwindale, California, Jackson, Georgia, Florence, New Jersey and Swedesboro, New Jersey. The company generates approximately $800 million in revenues. Ready Pac Foods has had private equity (PE) ownership for more than nine years by HIG Capital.

Bonduelle, now with more than $3 billion in revenue, is a family-owned company, with seven generations of the Bonduelle family involved since its founding in 1853. The French company owns four brands of canned, frozen and fresh vegetables with presence in 100 countries around the world.

The acquisition of Ready Pac Foods makes the U.S. Bonduelle’s largest country of operations and biggest division. This aligns with its strategic plan, which includes development of Bonduelle’s business in the consumer convenience and healthy food segments, increasing presence in the fresh prepared segment and reinforcement of its footprint in North America.

“This milestone acquisition for Bonduelle is a key step toward achieving our strategic ambition – VegeGo! 2025 – to become the world reference in well-living through vegetable products,” said Bonduelle Chairman and Chief Executive Officer, Christophe Bonduelle.

As previously announced, in connection with the closing, Bonduelle acquired 100 percent of the common stock of Ready Pac Foods and will run Ready Pac Foods as a wholly-owned subsidiary.