Hillshire Brands to buy Van’s Natural Foods for $165 million
Hillshire Brands Co., maker of Jimmy Dean sausage links and Ball Park franks, says it has agreed to pay $165 million to buy Van's Natural Foods from Catterton Partners, a private equity firm. If completed, the move would add a line of healthful, frozen breakfast and snack foods to Hillshire's existing brands, which also includes Sara Lee foods. The addition is expected to generate net revenue of $60 million in 2014, the company states.
Based in Phoenix, Van’s Natural Foods makes gluten-free pancakes, whole-grain waffles, cereals and multigrain chips. The transaction is reportedly expected to close in May.
“The Van’s brand is a terrific addition to our portfolio,” says Sean Connolly, Hillshire's CEO. “Not only does it expand our presence in the frozen category, it also gives us a proven health and wellness brand with extendability beyond frozen.”