Elgin nut company buys Squirrel Brand
The Elgin company said it purchased certain assets and assumed certain liabilities of Squirrel Brand for $31.5 million, of which $20 million was paid in cash and $11.5 million was financed by the seller through a three year unsecured promissory note.
Squirrel Brand is one of the nation's leading suppliers of indulgent and premium roasted nuts and snack mixes under its Squirrel Brand and Southern Style Nuts brands. These brands can be found in distribution channels such as coffee houses, online retailers, direct response television marketers, airlines and department stores in addition to grocery, warehouse clubs and mass merchandisers.
"The acquisition of the Squirrel Brand business provides us with an established customer base and branded product line that will help facilitate the execution of our expanding consumer reach growth strategy, especially in our alternative distribution channels," said Jeffrey T. Sanfilippo, chairman and CEO of JBSS. "Squirrel Brand has been a customer in our contract packaging distribution channel for fourteen years, and we know well the Squirrel Brand team and their business." For our fiscal year 2017, Squirrel Brand's net sales were approximately $36.2 million, and our sales to Squirrel Brand were approximately $24.8 million. Consequently, we estimate the acquisition of the Squirrel Brand business would have added approximately $11.4 million to our net sales for our 2017 fiscal year.
Before considering expenses associated with this transaction, the acquisition of Squirrel Brand would have added approximately $4.1 million to income from operations for our fiscal year 2017," Jeffrey Sanfilippo said. "I am also pleased to announce that Brent Meyer, president of Squirrel Brand, has agreed to join us as a senior vice president. Over the years, Brent has continuously impressed us with his ability to build brands and his innovative approaches to marketing and distribution," stated Jeffrey Sanfilippo.
John B. Sanfilippo & Son Inc. is a processor, packager, marketer and distributor of nut and dried fruit based products that are sold under a variety of private brands and under the company's Fisher, Orchard Valley Harvest, Sunshine Country and Southern Style Nuts brand names.