Richmond, Canada-based Premium Brands Holding Co. discussed several small acquisitions it made in 2019 and executives’ expectations for more purchases in 2020, in a recent earnings call with equity analysts.
“We’re pleased to report the recent closings of three transactions: Inform Brokerage, Bavarian Meats and La Felinese,” the last an Italian salumi manufacturer, CEO George Paleologou told analysts. “All of these businesses bring with them exceptional brands and great people and will play a key role in helping us execute our various specialty food-focused strategies. We expect 2020 to be another very busy year for acquisitions, driven by a very robust deal pipeline.”
Premium Brands took a 16.7% stake in La Felinese, “an equity investment, so it doesn’t even impact our sales or EBITDA,” explained CFO Will Kalutycz, on the call. The La Felinese investment is Premium Brands’ first foray into Europe.
Bavarian Meats is a small Seattle-based company, with about US$5 million to US$6 million in sales; that acquisition will become part of Premium Brands’ Specialty Foods division.
Premium Brands also owns a series of other meat brands, including Oberto meat snacks and Isernio’s Sausage.
For the full year 2019, the company reported revenues of C$3.65 billion, up 22% from the year earlier, and net earnings of C$84.2 million, a drop of 14% from 2018.