Sandwich company AdvancePierre Foods is buying the manufacturing operations of Landshire Inc. for an undisclosed amount.
Caseyville, Illinois-based Landshire is known for making more than 80 different kinds of prepared food products, including patties, pre-made subs, wedges and breakfast items that are sold to retail and convenience store channels.
The deal should help expand AdvancePierre's product offerings and give the Cincinnati-based company another baking facility to increase production.
AdvancePierre currently manufactures and markets a variety of meat and proteins, including fully-cooked beef, chicken and pork products, as well as uncooked meat items and bakery products.
Landshire's distribution network, which boasts more than 100 routes in 23 states, is not included in the transaction. Instead, the network will be retained by the Landshire founders and renamed Landshire Distribution, which will partner with AdvancePierre separately.
Oaktree Capital Management LP (NYSE: OAK) currently backs AdvancePierre and owns a majority stake in the company. The Los Angeles private asset management firm has $93 billion in assets under management.
The acquisition is one of many recent food and beverage deals, dozens of which have been spurred by consumer interest in better-for-you eating. Recent transactions include Findus Spain's purchase of La Cocinera, a frozen foods business, from Nestle, and Centre Partners' acquisition of a majority stake in juice maker Sun Orchard Inc.
For more on food trends, see Vitamins, Minerals and Supplements Feed Consumers and Deals and Snack Time.
For more coverage on M&A in this sector, see 6 Notable Food Deals in 2014.