US-based sandwich producer AdvancePierre Foods has acquired raw and cooked beef and chicken Philly steak product maker Allied Specialty Foods from Steven Zoll for $60m in cash.
However, the transaction amount is subject to certain post-closing adjustments.
The acquisition enables AdvancePierre to strengthen its position in the Philly steak platform by gaining entry into fully-cooked product offerings.
AdvancePierre president and CEO John Simons said: “The Philly steak category is primed for growth, and this acquisition strengthens our position, brings us additional products and production capacity, and expands our geographic reach."
Founded in 1956, Allied is one of the major manufacturers of raw and fully-cooked Philly steak products for foodservice customers in the US.
It has a 20,000ft2 manufacturing facility in Vineland, New Jersey, with two cook lines, three raw slicing lines and one breakaway steak line.
In June, the company started constructing a new 70,000ft2. facility, which is expected to be completed during the first quarter of 2017.
The new plant will have seven raw slicing/breakaway lines and four cook lines.
AdvancePierre board of directors chairman Dean Hollis said: “The transaction is a great example of AdvancePierre's strategy of strengthening and growing its core business through disciplined, accretive acquisitions.
“We continue to evaluate a significant number of highly attractive, synergistic acquisition opportunities on the horizon and believe AdvancePierre is well-positioned and capitalized to pursue future opportunities as they arise."
Headquartered in Cincinnati, Ohio, AdvancePierre is a producer and distributor of ready-to-eat sandwiches, sandwich components and other entrées and snacks to a wide variety of distribution outlets including foodservice, retail and convenience store providers.
In April last year, it completed the acquisition of the manufacturing assets of American stuffed sandwich maker Better Bakery to expand its presence in on-trend, clean label products.
