Premium Brands Holdings adds Stampede to M&A roster

Core Viewpoint - Premium Brands Holdings has acquired US-based Stampede Culinary Partners for nearly US$664 million, enhancing its capabilities in sous-vide cooking and expanding its market presence in the US [1][4]. Acquisition Details - The acquisition cost is structured as $512.5 million in cash and $150 million in Premium Brands shares, with an additional potential payout of $100 million based on undisclosed profitability targets over the next two years [3]. - The transaction is expected to close by the end of January, pending competition approval [4]. Company Background - Stampede Culinary Partners specializes in sous-vide cooking for meat and plant-based proteins and has expanded its product offerings to include poultry, prepared meals, and vegetables across six US facilities and one in Canada [2]. - The primary customer channel for Stampede is foodservice, but it also serves retail, club stores, food distributors, and military institutions [2]. Financial Impact - Premium Brands anticipates a mid-single-digit increase in adjusted earnings per share in the first full year post-acquisition, potentially rising to high-single digits with expected synergies [5]. - Stampede is projected to generate $936 million in revenue and $108 million in adjusted EBITDA for the current year, with a net profit before tax of $17.9 million [6]. Funding Strategy - To finance the cash portion of the acquisition, Premium Brands plans to utilize indirect share offers and bonds, including $325 million from public subscription receipts and $108 million from convertible notes, along with $80 million from existing credit facilities [6].