AdvancePierre to Acquire Landshire Wholesale, Manufacturing Operations
Deal provides new product capabilities, additional sandwich, bakery capacity
CINCINNATI -- AdvancePierre Foods, a leading supplier of sandwich products to convenience stores, foodservice and other retail channels, has entered into an agreement to acquire the wholesale and manufacturing operations of Landshire Inc., a manufacturer of sandwich products also in those channels.
AdvancePierre expects the transaction to close during the first quarter of 2015. The companies did not disclose the financial details of the transaction.
Under the terms of the deal, AdvancePierre will assume ownership of Caseyville, Ill.-based Landshire's sandwich manufacturing operations, which produce more than 80 frozen, fully cooked products and feature a wide variety of sandwiches including patties, subs, wedges, breakfast offerings and specialty items.
"We are very excited about the recognized and established product platform and first-class facility that Landshire brings to our existing portfolio and network," said John Simons, president and CEO of Cincinnati-based AdvancePierre. "We are eager to build upon the Trover family legacy and delighted to incorporate Landshire's product capabilities for our customers across our broad sales channels. This acquisition underscores AdvancePierre's commitment to innovation and quality as we continue to provide our customers with tasty and unique sandwiches and center-of-plate proteins solutions."
The Trover family will retain its proprietary direct-store delivery (DSD) distribution network of more than 100 routes in 23 states--which will be known as "Landshire Distribution" after the acquisition closes--and has entered into a mutually beneficial distribution agreement with AdvancePierre.
The acquisition brings a new set of premium products to the AdvancePierre portfolio that will complement and increase its product offerings and thoroughly align with the channels it serves. Additionally, Landshire's facilities will provide AdvancePierre with additional capacity for increased sandwich and bakery production. An industry leader in sandwich production, AdvancePierre currently produces approximately 2 million sandwiches a day. The addition of Landshire is expected to comprise more than 10% of AdvancePierre's sandwich sales in 2015.
"The acquisition of Landshire's wholesale and manufacturing operations further fortifies AdvancePierre's market-leading position in providing sandwich solutions to our customers," said Matthew Wilson, director of AdvancePierre's board of directors and co-portfolio manager at Oaktree Capital Management LP. "We continue to see a significant number of highly attractive, synergistic acquisition opportunities for our two core business lines--sandwiches and value-added protein solutions--and believe the company is well capitalized to fund future opportunities as they arise. We expect AdvancePierre to announce additional transactions this year based upon our current pipeline of prospective partners."
Landshire's Caseyville manufacturing facility will be a part of the AdvancePierre family of operating facilities.