Nestle Hot Pockets Chef America
Nestle has agreed to buy privately-held Chef America, makers of Hot Pockets, Lean Pockets, Croissant Pockets, Pizza Minis and Toaster Melts for $2.6 billion in cash and debt.
The purchase gives Nestle a foothold in the fast-growing handheld food market. According to Nestle, Chef America is expected to generate $720 million in sales this year.
According to Francois Perroud, Nestle spokesperson, Chef America was one of the most profitable food companies in the United States. “This is an aquisition that makes a lot of sense. It’s a fast-growing, profitable business. All those things that make you smile.”
The price that Nestle paid is considered hefty, but is still a good deal based on the Chef America’s growth potential and its position in the hand held frozen food category.
Nestle’s deal for Chef America is subject to regulatory clearance and is expected to be closed within the next couple of months.
Moderator’s Comment: How has (will) manufacturer consolidation
affected the CPG and food retailing industries?
Ralston Purina, Dreyer’s, Chef America and maybe Hershey
next – the M&A folks at Nestle have been busy, busy. [George
Anderson – Moderator]