H.J. Heinz Company has agreed to purchase privately held Nancy's Specialty Foods Inc. -- producers of the Nancy's brand of premium appetizers, quiche entrées and desserts -- from affiliates of Kohlberg & Company LLC. Terms of the agreement were not disclosed.
Nancy's branded products, which are marketed primarily through U.S. club stores and retail grocery outlets, as well as select retailers in Canada, generate approximately $64 million in annual net sales. Nancy's branded products are also sold to restaurants and other foodservice venues in the United States.
The acquisition adds to Heinz's growing portfolio of frozen appetizers, snacks and dessert brands, which includes Delimex, TGI Friday's, Bagel Bites and Poppers.
Heinz chairman, president and chief executive officer William R. Johnson said, "This acquisition is perfectly aligned with Heinz's strategy to focus on core areas of expertise to drive profitable growth. The addition of the Nancy's products to our frozen snacks, appetizers and desserts business further cements Heinz as the premier supplier in this growing segment."
Heinz senior vice president and president of U.S. Consumer Products Dave Moran said, "This acquisition strengthens our presence not only in traditional retail, but also in the increasingly important club store channel, where the Nancy's brand is strong. Overall, the brand has enjoyed average annualized growth of +5% over the past three years. We see numerous opportunities to continue to grow this business, both through line extensions and additional usage opportunities in the growing breakfast and dessert segments."
Heinz expects the acquisition to be accretive in its first full fiscal year.