United Natural Foods Inc. (Nasdaq: UNFI) is buying Tony's Fine Foods for $195.3 million.
West Sacramento, Calif.-based Tony's distributes perishable food products, including deli meats, cheeses, bakery goods and other food services. The products are sold throughout the western U.S., as well as Alaska and Hawaii.
United Natural Foods, headquartered in Providence, Rhode Island, carries more than 65,000 products to more than 31,000 customer locations across the U.S. and Canada. In September, the company agreed to buy Trudeau Foods LLC, a distributor of natural, organic and specialty food products.
“Natural protein and specialty perishable products are a very important part of UNFI’s future. Tony’s Fine Foods will serve as our platform for building out our national perimeter product offering," says Steven Spinner, United Natural's CEO.
Once the deal closes, which is expected to happen in the fourth quarter, Tony's will operate as a subsidiary of United Natural.
The purchase price includes about $187.8 million in cash and 112,000 shares of United Natural's common stock. Tony's shareholders will use part of the purchase price to pay off the company's debt when the deal closes.
Other recent food deals include Mizkan Group's purchase of the Ragu and Bertolli pasta sauce businesses from Unilever, also announced May 22, and Hillshire Brands Co.'s purchase of Pinnacle Foods, a deal announced earlier in May.
For more on the food sector see "Snack Time."