Inventure Foods Inc. signed a letter of intent to purchase substantially all of the assets of Fresh Frozen Foods LLC.
September 24/Phoenix/PRNewswire -- Inventure Foods Inc. signed a letter of intent to purchase substantially all of the assets of Fresh Frozen Foods LLC. Based in Jefferson, Ga., Fresh Frozen is a full-service processor and supplier of more than 60 varieties of frozen vegetables and fruits to retail outlets throughout the southeast U.S. and the Caribbean Islands. Fresh Frozen reported gross revenues of over $60 million during the most recent 12-month period.
The letter of intent, which is non-binding except for confidentiality and no-shop provisions, contemplates a purchase price of $38 million at closing, plus deferred consideration in the form of an earn-out of up to $3 million based on 2014 performance, subject to certain closing and post-closing purchase price adjustments. The transaction remains subject to completion of due diligence, agreement on a definitive purchase agreement and other customary closing conditions. The parties anticipate that definitive documents will be signed and closed on or about November 1, 2013. Inventure will fund the purchase price from a new senior syndicated credit facility that will be funded prior to closing. Wedbush Securities is acting as financial advisor to Inventure Foods on the transaction. The transaction, if consummated, is anticipated to be immediately accretive to earnings.