US food company Smart Balance has completed the acquisition of Udi's Healthy Foods,a producer of gluten-free products,for$125m in cash.
Smart Balance has acquired Udi's Healthy Foods from majority shareholder Hubson Acquisition,an affiliate of E&A Industries based in Indianapolis,the family of founder Udi Bar-on,and other minority holders.
According to the company,the acquisition,as well as the refinancing of existing outstanding debt,was financed with the proceeds of a new$280m senior secured credit facility.
Smart Balance chairman and CEO Stephen Hughes said the acquisition positions Smart Balance as a leader in gluten-free,accelerates its growth rate,and further diversifies its mix toward high-growth natural brands.
"As a result,we expect the Company's organic revenue growth rate to accelerate,and we look forward to providing our initial outlook on Udi's in connection with our second quarter call on August 2,2012,"Hughes added.
Udi's Healthy Foods markets gluten-free products under Gluten Free Foods brand in the retail market and food service channels.Its gluten-free products include bread,bakery products,frozen pizza,and granola products,among others.
Smart Balance offers health and wellness products under four brands-Smart Balance;Glutino;Earth Balance;and Bestlife.
