Lassonde acquires Summer Garden for US$237.2 million

ROUGEMONT — Lassonde Industries acquires The Zidian Group, which operates Summer Garden Food Manufacturing, through a 90 per cent-owned U.S. subsidiary.

Located in Boardman, Ohio, and employing approximately 200 people, Summer Garden develops, manufactures and markets sauces and condiments, including tomato and cream-based pasta sauces, BBQ sauces, dipping sauces and dressings.

“We are delighted to welcome Summer Garden’s employees and management to the Lassonde organization, and we look forward to leveraging our combined expertise,” said Nathalie Lassonde, CEO and vice-chair of the BOD of Lassonde Industries. “This acquisition marks an important step in the execution of our strategy by significantly expanding the scope of our North American specialty food business and creating a new growth platform for Lassonde.”

Vince Timpano, president and COO of Lassonde Industries said, “Through brands that hold growth potential in their categories, Summer Garden expands our core offering in pasta sauces and extends our reach into new adjacencies. Its product portfolio and capabilities will deliver an immediate path to growth at attractive and accretive margins.”

The acquisition was for a cash consideration of US$237.2 million. This amount reflects US$2.2 million in preliminary adjustments related to working capital and could be subject to additional adjustments related to working capital and other items once the final value is established. Moreover, a contingent consideration of up to US$45.0 million may be payable in various instalments over the next three years, should certain financial targets be achieved, and other conditions met. Consistent with the ownership structure of the Corporation’s U.S. subsidiaries in place since 2011, the corporation owns a 90 per cent equity interest in Summer Garden while 3346625 Canada owns the remaining 10 per cent.