Heinz to buy Nancy's(R) premium appetizers and desserts business
The acquisition adds to Heinz's growing portfolio of frozen appetizers, snacks and dessert brands.
20/07/05 H.J. Heinz Company has announced that it has agreed to purchase privately-held Nancy's Specialty Foods, Inc. - producers of the Nancy's(R) brand of premium appetizers, quiche entrees and desserts - from affiliates of Kohlberg & Company, LLC. Terms of the agreement were not disclosed.
Nancy's(R) branded products, which are marketed primarily through U.S. club stores and retail grocery outlets, as well as select retailers in Canada, generate approximately $64 million in annual net sales. Nancy's(R) branded products are also sold to restaurants and other foodservice venues in the United States.
The acquisition adds to Heinz's growing portfolio of frozen appetizers, snacks and dessert brands, which includes Delimex(R), TGI Friday's(R), Bagel Bites(R) and Poppers(R).
Heinz expects the acquisition to be accretive in its first full fiscal year.
The Nancy's(R) brand is a leader in premium frozen appetizers in the United States, offering high quality, easy-to-prepare products to suit multiple meal occasions. The Nancy's(R) business offers a full line of quiche products, including entrees and Petite Quiche(R) appetizers. In addition, the company makes a line of gourmet appetizers, including the Deli Spirals(R) brand, as well as a fast-growing line of dessert items and a range of custom products.
Nancy's(R) branded products are a leader in the club store channel, where the business has grown at a double-digit rate in the past two years. The business also has been a solid performer in retail grocery stores.
Heinz will take ownership of the Nancy's(R) production facility in Newark, California, which employs approximately 375 people.
Heinz's acquisition of the Nancy's(R) business comes on the heels of a recent agreement with Groupe Danone, SA to purchase several leading sauces brands, including HP(R) and Lea & Perrins(R). These recent moves reflect the company's strategy to drive growth in its four core businesses of ketchup, condiments & sauces; meals & snacks; infant nutrition; and foodservice. Collectively, these four businesses generate 90 percent of the company's annual profits.
H.J. Heinz Company, offering "Good Food, Every Day(TM)," is one of the world's leading marketers and producers of branded foods in ketchup, condiments, sauces, meals, soups, seafood, snacks, and infant foods. Heinz satisfies hungry consumers in every outlet, from supermarkets to restaurants to convenience stores and kiosks. Heinz is a global family of leading brands, including Heinz(R) Ketchup, sauces, soups, beans, pasta and infant foods (representing nearly one-third of total sales or close to $3 billion), Ore-Ida(R) French fries and roasted potatoes, Boston Market(R) and SmartOnes(R) meals, and Plasmon(R) baby food. Heinz's 50 companies have number-one or number-two brands in 200 countries, showcased by Heinz(R) Ketchup, The World's Favorite Ketchup(TM).
