Premium Brands Holdings has acquired 100% of the shares of Ontario based Belmont Meat Products for $50m.
The purchase price of the acquisition is subject to certain customary adjustments.
Premium Brands will be paying $49.2m in cash and the remaining $0.8m by issuing its common shares.
Belmont Meat president and CEO Paul Roach said: "Premium Brands has a great track record of partnering with management to build successful businesses. We are looking forward to working with them as we expand and grow our business in both Canada and the U.S.”
British Columbia based Premium Brands is a producer, marketer and distributor of branded specialty food products.
On the other hand, its new acquisition Belmont is a manufacturer of burger patties in Canada with annual sales of around $120m. Belmont produces a range of customized burgers for retail and foodservice clients across Canada.
It is also looking to introduce some of its products in the US retail market in the future.
Premium Brands Holdings president and CEO George Paleologou said that Belmont has potential to grow wnder the Premium Brands umbrella.
Paleologou said: “In particular we expect to generate significant synergies between Belmont's business, our burger operations in western Canada and our Centennial Foodservice business' recently announced initiative to expand into the Ontario market.
"Furthermore, Belmont's strong management team significantly enhances our bench strength in the Ontario market.”
Premium Brands will pay the acquisition amount from its current bank assets. The company also expects the acquisition to be immediately accretive to both its earnings per share and free cash flow per share.
In September, Premium Brands completed acquisition of Fletcher's Fine Foods through its Washington subsidiary Hempler Foods Group.