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Piller's to merge with Premium Brands

Published by Steve Coleman on August 04, 2011

A staple in the Canadian food industry will soon have a new owner.

Premium Brands Holdings Corporation announced Aug. 4 that it has reached an agreement with Waterloo, Ont.-based Piller Sausages & Delicatessens Limited to put their products on the Premium menu.

The maker of specialty European deli meats reported having 600 employees and $180 million in sales last year. The company is currently owned and operated by the Huber family who started the business in 1957.

Premium's offer for the company consisted of $73.7 million in cash and 1,968,750 Premium Brands shares. The offer included an incentive package of up to $10 million more if Piller's can hit unnamed profitability targets over a two-year stretch. The money would be payable 26 months after the initial purchase deal closes sometime later this month.

The Canadian Competition Bureau still has to give its clearance to the purchase before it can go ahead.

"This transaction will create a national deli meats platform that will feature two of Canada's most respected deli brands: Grimm's in the west and Piller's in the east," George Paleologou, President and CEO of Premium Brands said in a statement. "Piller's will be our third major investment in Ontario in the last 12 months and will provide us with state-of-the-art production capabilities, industry leading product research and development expertise and a proven management team that has been able to generate consistent profitable growth for many years. "

The Huber family has also accepted jobs with Premium Brands and will continue to run Piller's.

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