The Bangkok-based Charoen Pokphand Foods Public Company Limited (CPF) has entered into a definitive agreement to acquire Bellisio Parent, LLC from Centre Partners Management LLC for $1.8 billion. The transaction, subject to customary closing conditions and regulatory approvals, is expected to be finalized within 180 days.
Founded in 1990, the Minneapolis, Minnesota-headquartered Bellisio group is the third largest producer and distributor of single-serve frozen entrees in the United States by unit share. It is also the leader in the single-serve frozen entrees market in Canada. The group has four production plants operating in Minnesota, Ohio and California.
Among Bellisio’s proprietary brand products are recently launched EatingWell and EAT! ready meals and long-established Michelina’s entrees, which run the gamut from Fettuccine Alfredo and Spaghetti Marinara to Lasagna with Meat Sauce, Cheese Manicotti, Stroganoff and Teriyaki Chicken. It also packs dishes, appetizers and snacks sold in retail stores under the Boston Market and Chili’s At•Home labels, featuring recipes including Salisbury Steak, Beef Pot Roast for the former and Cajun-style Chicken Alfredo and Chipotle Bacon Jalapeño Bites for the latter.
This acquisition expands the presence of CPF in the US market, where it sells large volumes of frozen shrimp and other seafood, as well as value-added ready meals such as CP Authentic Asia Shrimp Wonton Soup with Noodles. Controlled Dhanin Chearavanont, who is the richest man in Thailand, the CPF conglomerate ranks as the nation’s largest meat and feed producer and is a leader in the farm-raised shrimp industry.
The Bellisio group has relationships with North American food retailers that cover over 50,000 distribution points. It is able to distribute products to more than half of the United States market in 24 hours or less, and reach all customers in the continental US within 48 hours. For the last 12 months ending on September 11, 2016, the company generated adjusted net sales of $668 million and adjusted EBITDA of $82 million.
New York City-based Centre Partners Management LLC, a private equity enterprise, has owned Bellisio since it was purchased for an undisclosed price from food industry and real estate entrepreneur Jeno Pallucci shortly before his death in 2011.
Commenting on the acquisition by Charoen Pokphand Foods, Joel Conner, chairman and the chief executive officer of Bellisio, said: “We are deeply grateful to Centre Partners for their support and guidance since partnering with us five years ago. At the same time, we are also extremely excited to be part of the CPF family and share their vision of being part of the ‘Kitchen of the World.’ I believe that our partnership with CPF will allow us to propel Bellisio through its next phase of growth.”
Adirek Sripratak, chief executive officer of CPF, added: “We are thrilled to have the opportunity to work with Joel and his team to bring Bellisio to its next phase. This transaction marks the first step of our entry into the world’s largest food market, where we see significant growth and synergy opportunities. We believe that through leveraging our combined strengths we can bring a greater variety of products, particularly Asian food products, to US consumers as well as export our products globally. This acquisition is in line with our strategic direction to expand into high potential market. After the transaction, CPF’s revenue contribution from food business will rise.”
