PE-backed Premium Brands buys Skilcor Food Products

Canadian specialty food products company Premium Brands Holdings Corp (TSX: PBH) has acquired a 100 percent interest in Skilcor Food Products Inc, a Brampton, Ontario-based manufacturer of cooked back ribs and other meat products. No financial terms were released. Skilcor was founded in 1999 by Chair Deborah Kinzinger. Premium Brands said the acquisition expands its presence in central Canada’s protein production and distribution segments. Based in Vancouver, Premium Brands has been backed by Canadian private equity firm Pender West Capital Partners since 2005.

PRESS RELEASE

Premium Brands Holdings Corporation Announces the Acquisition of Ontario Based Skilcor Foods

VANCOUVER, Sept. 28, 2017 /CNW/ – Premium Brands Holdings Corporation (TSX: PBH), a leading producer, marketer and distributor of branded specialty food products, announced today that it has acquired a 100% interest in Ontario based Skilcor Food Products. Skilcor is one of Canada’s leading manufacturers of cooked back ribs and other unique protein products. It has annual sales of approximately $27 million and operates out of a specially designed 34,000 square foot facility that was built in 2006.

“Skilcor further strengthens our rapidly growing precence in central Canada’s protein manufacturing and protein distribution segments. It will not only expand our portfolio of products but will also give us specialized production capacity that will enable us to provide customers with premium quality differentiated protein solutions in the high growth ready-to-eat product category,” said Mr. George Paleologou, President and CEO of Premium Brands. “In addition, Skilcor’s experienced and talented management team will further enhance the depth of our Protein Platform in central Canada,” added Mr. Paleologou.

“I have no doubt that Premium Brands is the right partner for us, our company and our people,” said Mrs. Deborah Kinzinger, Founder and Chair of Skilcor. “I am very proud of our team, our culture and our products and of how much we have accomplished since Skilcor was founded back in 1969.

“We are looking forward to working with the other companies under the Premium Brands umbrella to help accelerate our growth across Canada and into the U.S.”, added Ms. Kinzinger.

The transaction will be funded through Premium Brands’ existing bank facilities and is expected to be immediately accretive to its annual earnings per share and free cash flow per share.

ABOUT PREMIUM BRANDS

Premium Brands owns a broad range of leading specialty food manufacturing and differentiated food distribution businesses with operations in British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Quebec, Nova Scotia, Nevada, Ohio, Arizona and Washington State. The Company services a diverse base of customers located across North America and its family of brands and businesses include Grimm’s, Harvest, McSweeney’s, Piller’s, Freybe, SJ Fine Foods, Expresco, Belmont Meats, Leadbetter Foods, Skilcor, Cobblestone Farms, Hempler’s, Isernio’s, Fletcher’s U.S., Direct Plus, Audrey’s, SK Food Group, OvenPride, Bread Garden Go, Hygaard, Quality Fast Foods, Deli Chef, Creekside Bakehouse, Stuyver’s Bakestudio, Island City Baking, Partners Crackers, Conte Foods, Larosa Foods, Gourmet Chef, Duso’s, Centennial Foodservice, B&C Food Distributors, Shahir, Wescadia, Harlan Fairbanks, Maximum Seafood, Ocean Miracle, Hub City Fisheries, Diana’s Seafood, C&C Packing, Premier Meats and Interprovincial Meat Sales.

www.premiumbrandsholdings.com

For further information: George Paleologou, President and CEO or Will Kalutycz, CFO at (604) 656-3100

Photo courtesy of Skilcor Food Products Inc