Premium Brands Holdings Adds Stampede To M&a Roster

Credit: Food is Love/Shutterstock

Canada’s Premium Brands Holdings has wrapped up nan twelvemonth pinch different acquisition, snapping up US-based Stampede Culinary Partners.

Premium Brands is paying conscionable awkward of US$664m for nan Bridgeview, Illinois-headquartered business, which specialises successful nan sous-vide cooking method for nutrient and plant-based proteins.

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Starting successful 1995 pinch beef and pork, Stampede has since expanded into poultry, prepared meals and vegetables produced astatine six US accommodation and 1 successful Canada, located successful Cambridge, Ontario, according to its website.

Foodservice is Stampede’s superior customer transmission but it besides supplies retail, nine stores, nutrient distributors and subject institutions.

Payment for nan business is divided into $512.5m successful rate and $150m successful shares of Premium Brands. Stampede will besides beryllium eligible for a $100m payout if it achieves set, but undisclosed, profitability targets successful nan adjacent 2 years.

George Paleologou, nan president and CEO of Premium Brands, said successful a statement: “Over nan past mates of years, we person made important investments successful accumulation capacity to support nan maturation of our market-leading branded and customised cooked-protein initiatives successful nan US.

Subject to title approval, nan transaction is expected to adjacent by nan extremity of January.

Stampede CEO Brock Furlong said: “We are very excited astir joining nan Premium Brands family and look guardant to leveraging its resources and complementary accumulation capabilities to accelerate nan maturation of our business.

“In particular, we spot tremendous opportunities to waste galore of nan exciting, premium products produced by nan Premium Brands ecosystem to our divers portfolio of foodservice and emergent unit customers.”

Premium Brands said nan acquisition will supply a mid-single-digit summation to its adjusted net per stock complete nan first afloat twelvemonth of ownership, rising to high-single digits including expected “synergies”.

Meanwhile, Premium Brands will part-fund nan rate information of nan transaction done indirect stock offers and bonds.

The institution is trading US$325m of alleged nationalist subscription receipts and US$108m of convertible notes, according to a abstracted presentation, while a further US$80m will beryllium drawn from existing in installments facilities.

Stampede is expected to make $936m successful gross this twelvemonth and $108m successful adjusted EBITDA, on pinch nett profit earlier taxation of $17.9m, nan position archive showed.

Premium Brands has built up its gross and profit guidelines done M&A. Earlier this year, it announced nan addition of Arizona-based premium sausage shaper Denmark Sausage, a woody struck for $21m.

Before past twelvemonth wrapped up, nan institution revealed a trio of caller deals – NSP Quality Meats, Casa Di Bertacchi and Italia Salami. The first 2 are based successful nan US and nan 3rd successful Canada.

That aforesaid year, Premium Brands reported a 3.3% summation successful gross to C$6.47bn ($4.68bn today). Adjusted EBITDA roseate 6.2% to C$593.7m but adjusted EPS dipped 1.2% to C$3.98.

In November, nan institution reported its year-to-date fiscal 2025 results for nan 9 months to 27 September.

Revenue was up almost 16% astatine C$5.58bn, while adjusted EBITDA was up 10.7% astatine C$492.7m. Adjusted EPS climbed 12% to C$3.28. Net profit, however, slid to C$28.8m from C$84.2m.

At nan aforesaid time, Premium Brands tweaked its full-year adjusted EBITDA guidance little to C$670-680m, compared to its erstwhile outlook of C$680-700m.