Canadian company acquiring Ohio-based specialty food manufacturer

Canada-based Lassonde Industries is acquiring The Zidian Group, which operates Ohio-based specialty food manufacturer Summer Garden Food, for $235 million.

An additional amount of up to $45 million may be payable over the next three years if certain financial targets and other conditions are met, according to a news release.

Summer Garden, which employs approximately 200 people, manufactures and markets a range of premium sauces and condiments, including tomato and cream-based pasta sauces, BBQ sauces, dipping sauces and dressings. Its portfolio consists of approximately 250 products sold through more than 20,000 locations under the Gia Russa and Little Italy in the Bronx brands and under the G Hughes brand, a leader in the U.S. sugar-free BBQ sauce segment. Summer Garden also acts as a co-packer for well-known brands.

“The acquisition of Summer Garden supports our ambition to become a more diversified North American food and beverage company,” Nathalie Lassonde, CEO and board vice chair of Lassonde Industries Inc., said in the release. “Growing our specialty food activities is one of Lassonde’s key strategic objectives and we are happy to have found the right company to help us achieve this objective. Our culture and values align with those of Summer Garden, which is also a multi-generational family business, with an entrepreneurial spirit and strong commitment to its employees, customers, consumers and the communities in which it operates.”

The transaction, subject to regulatory clearance, is expected to close within 30 to 45 days, according to the release.

“We are excited with the expansion of our specialty food activities by adding a product portfolio and capabilities that delivers an immediate path to growth at attractive and accretive margins,” Vince Timpano, president and chief operating officer of Lassonde Industries, said. “It marks another important step in the execution of our long-term strategy and moves us closer to achieving our objective of $3 billion in sales with further margin improvement. Through brands that hold growth potential in their categories, Summer Garden expands our core offering in pasta sauces and extends our reach into new adjacencies.

“We are also integrating high-quality assets into our network, including additional retort capabilities, to position ourselves as the manufacturer of choice for our customers.”

For a 12-month period ending in May, Summer Garden generated sales of $148 million, according to the release.

“This partnership ensures our legacy will continue to thrive,” Summer Garden CEO and president Thomas Zidian said. “We are confident it will benefit our customers through enhanced products and will offer our employees new opportunities for development and advancement.”