Premium Brands acquires South Seas Meats

Premium Brands, a producer, marketer and distributor of branded specialty food products, has acquire

SSM's provides a line of meats including a range of Halal and other ethnic foods, to restaurants, hotels and specialty butcher shops in the Greater Vancouver area. Its annual sales are approximately $10m.

George Paleologou, president and CEO of Premium Brands, said: "This transaction is consistent with our strategy of using bolt-on acquisitions to strengthen our differentiated distribution networks and expand our portfolio of specialty food products."

Mr Paleologou added, "Looking forward, we expect to generate significant synergies from this transaction by providing SSM access to our global procurement initiatives, information system technologies and financial resources and by leveraging SSM's ethnic foods expertise to expand the product offerings of our other distribution networks."

The company expects the SSM deal to generate approximately $0.5m in incremental EBITDA in 2010 with its annualized EBITDA run rate rising to approximately $0.8m by the end of the year. Correspondingly, the transaction is projected to be accretive to the company's 2010 earnings and free cash flow.