|Smart Balance has made a major acquisition. |
The press release:
Smart Balance to buy Udi's Healthy Foods for $125M
Smart Balance Inc. agrees to acquire gluten-free food-maker Udi's for $125 million cash
Associated Press – Fri, Jun 1, 2012 10:14 PM EDT
DENVER (AP) -- The food company Smart Balance Inc. has agreed to pay $125 million in cash to acquire Denver-based Udi's Healthy Foods LLC, which makes Udi's Gluten Free Foods products.
Smart Balance, based in Paramus, N.J., said it expects future tax benefits of about $22 million, making the effective purchase price about $103 million.
It is buying Udi's from majority shareholder Hubson Acquisition LLC and minority shareholders, including the family of founder Udi Bar-on.
The transaction is expected to close in July.
The Udi's food empire started when Bar-on and his wife launched a sandwich operation that grew into catering, restaurant, cafe and bakery enterprises. Bar-on and his son then built a national business around gluten-free food. In 2010, E&A Industries, whose affiliate is Hubson Acquisition LLC, took a majority stake in the gluten-free food business to help it grow.
Udi's reported sales of $60.9 million in the 12 months that ended March 31. The companies said Udi's had $4.3 million in net sales in 2009.
Meanwhile, Bar-on's family said Friday it is retaining its Udi's Foods restaurant, bakery and catering business.
Smart Balance, which sells buttery spreads, cooking sprays and other products, bought another gluten-free food maker, Glutino, in August. Smart Balance told investors Friday that buying Udi's would diversify the company's portfolio of health and wellness brands while positioning it as a leader in gluten-free foods.
Shares of Smart Balance rose 14 cents to $6.07 on Friday.