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Under terms of the agreement, Sanfilippo & Son paid $32.8 million in cash. The Elgin, Ill.-based salted snack producer also may pay amounts of up to $10.5 million, contingent upon performance of the acquired business for the 2010 and 2011 calendar years.
Orchard Valley Harvest is one of the nation’s leading suppliers of branded and private label nut and dried fruit products in the produce category.
“The acquisition of OVH fulfills a key pillar in JBSS’ five-year strategic plan by significantly increasing our presence in the produce section of food retailers,” said Jeffrey T. Sanfilippo, chairman and CEO of JBSS.
“The perimeter of the store is where retailers have been increasingly focusing their time and investment and where consumers have more frequently been purchasing fruit and nut products,” he adds. “The acquisition of [Orchard Valley Harvest] provides JBSS with meaningful product and packaging diversity and significant access to one of the fastest growing channels for nut and dried fruit products. According to consumer data, as reported by a major market research firm, recent sales of nut and dried fruit products in the produce section have grown faster than in other sections of food retailers’ stores.”