Canada-based agri-food company Lassonde Industries plans to acquire Zidian Group, the business that operates Summer Garden Food Manufacturing.
Lassonde said it has entered into an agreement to buy the US-based sauces and condiments maker from the family owners for $235m.
A further $45m may be payable over the next three years should certain financial targets be achieved and "other conditions met", Lassonde said in a statement.
The transaction is subject to regulatory approval and other closing conditions but deal is expected to close within 30 to 45 days.
Summer Garden Food, located in Boardman, Ohio, employs approximately 200 people. The Rougemont, Quebec-based Lassonde suggested it will keep Zidian’s employees.
The US company manufactures “premium” sauces and condiments, including tomato and cream-based pasta sauces, BBQ sauces, dipping sauces and dressings.
Its portfolio consists of approximately 250 products sold through more than 20,000 locations under the Gia Russa and Little Italy in the Bronx brands, along with the sugar-free condiments label G Hughes. Summer Garden also acts as a co-packer.
Nathalie Lassonde, CEO of Lassonde Industries, said: "The acquisition of Summer Garden supports our ambition to become a more diversified North American food and beverage company.
"Growing our speciality food activities is one of Lassonde's key strategic objectives and we are happy to have found the right company to help us achieve this objective.
“We are looking forward to closing the transaction and welcoming new talented employees to the Lassonde organisation."
For the 12 months ended in May 2024, Summer Garden generated sales of $148m and adjusted EBITDA of approximately $27.9m.
Vince Timpano, president and COO of Lassonde Industries, said: "We are excited with the expansion of our speciality food activities by adding a product portfolio, and capabilities, that deliver an immediate path to growth at attractive and accretive margins.
"It marks another important step in the execution of our long-term strategy and moves us closer to achieving our objective of $3bn in sales with further margin improvement."
Thomas Zidian, president and CEO of Summer Garden said the deal “ensures our legacy will continue to thrive”.
He added: "We are confident it will benefit our customers through enhanced products and will offer our employees new opportunities for development and advancement.”
Lassonde is a food and drinks manufacturer that sells into retail, wholesalers and independent stores. Its portfolio includes sauces, soups, snacks, soft drinks and alcoholic beverages. It owns brands such as Canton, Good Bites and Friolento and also provides private label.
