Inventure Foods Finalizes Acquisition Of Fresh Frozen Foods

(RTTNews) - Inventure Foods Inc. (SNAK), a specialty food manufacturer, Tuesday announced the completion of the acquisition of substantially all of the assets of Fresh Frozen Foods LLC, a branded frozen vegetable processor. The purchase price was $38.375 million plus deferred compensation in the form of an earn-out of up to $3 million based on 2014 performance.

The deal is expected to be accretive to earnings in 2014, the company said.

Inventure entered into a new $60 million senior secured term loan and a new $30 million senior secured revolving line of credit with a syndicate of lenders to fund the purchase and repay two existing equipment term loans.

Fresh Frozen reported 15% average annual revenue growth over the last three years, with gross revenues over $60 million during the most recent 12-month period.

Headquartered in Georgia, Fresh Frozen is a family-owned, full-service processor and supplier of more than 60 varieties of frozen vegetables and fruits to retail outlets.

The acquisition will allow both companies to leverage each other's sales organizations, distribution channels, and products. Additionally, Inventure will now have year-round freezing operations and be able to freeze blueberries and other fruits in a new region of the country.