Pierre Foods will merge
with two other companies
Aug 5, 2010 7:00 AM
Senior management from Pierre Foods Inc, Advance Food Company Inc, and Advance Brands LLC announced that the boards of directors of all three companies have unanimously approved and entered into a definitive merger agreement. The combined company will be called Advance Pierre Foods and creates a supplier of protein and handheld convenience food products to the foodservice, school, retail, club, vending, and convenience store channels.
This transaction is expected to close within the next two months and is subject to customary closing conditions. Funds managed by Oaktree Capital Management LP, a Los Angeles CA-based investment firm, are currently the majority shareholder of Pierre Foods and upon closing, will maintain a majority share of the combined company. Current shareholders of Advance Food Co, the Allen and McLaughlin Families, will own a minority share of the combined company.
Bill Toler, current chief executive officer of Pierre Foods, will become the CEO of the newly combined company. Greg Allen, current CEO of Advance Food Co, will join the board of directors of the combined company.
Advance Pierre Foods will offer a full line of packaged sandwiches, fully cooked chicken and beef products, Philly-style steak, breaded beef, pork, and poultry, and bakery products. Headquartered in Cincinnati OH with some divisional leaders based in Oklahoma, Advance Pierre Foods will operate protein processing facilities in Oklahoma, Ohio, and Iowa as well as sandwich assembly facilities in North Carolina, Ohio, and South Carolina. The company will also operate bakeries in North Carolina and Oklahoma.
The management team for Advance Pierre Foods includes executives from all three companies. Integration planning for all company functions is underway.
Credit Suisse, Barclays Capital, Morgan Stanley, and BMO Capital Markets have entered into financing arrangements, subject to customary closing conditions, to provide debt financing for the transaction.
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