Vancouver-based specialty food products producer and marketer Premium Brands Holdings Corporation announced Thursday that it entered into a definitive agreement to acquire the majority of assets and divisions of American snack food maker Oberto Sausage Company.
“This transaction will create a leading North American platform in the rapidly growing meat snacks product category and will feature Canada’s top meat snacks brands, including McSweeney’s, Grimm’s, Freybe, Piller’s and Harvest, as well as Oberto’s iconic family of brands and our fast emerging, U.S.-based Hempler’s brand,” said George Paleologou, president and chief executive officer of Premium Brands, in a press release.
Seattle-based Oberto, one of the largest producers of beef jerky and other meat snacks in North America, is expected to become a part of Premium Brands within the next six weeks. Oberto produces the Cattleman’s Cut, Pacific Gold Reserve, and Oberto brands
“Oberto will be our third major investment in Washington State. Our two prior ones: sandwich maker SK Food Group and premium processed eats producer Hempler Foods Group, have both prospered under the Premium Brands umbrella with their combined sales growing from under $130 million in 2011 to over $560 million last year,” said Paleologou. “We fully expect Oberto to replicate this kind of success by combining its current strengths with access to our various resources.”
The company also announced it has increased its stake in Canadian firm McLean Meats to 66.2% from 32.2%. Premium Brands said it invested a total of $237 million in the Oberto and McLean transactions.