Annie's Inc. (NYSE: BNNY), a leading natural and organic food company, announced that it has completed the acquisition of Safeway's snack manufacturing plant in Joplin, Mo., which has been Annie's primary manufacturer of cookie and cracker products since the inception of its snacks business in 2002. Annie's Baking LLC, a subsidiary of Annie's Inc., acquired the plant for $6.0 million, plus the actual cost of inventory and supplies on hand at closing. The acquisition was funded with approximately $7.4 million in cash on hand. Concurrent with the closing of the transaction, Annie's Baking LLC also entered into a supply agreement to produce products on behalf of an affiliate of Safeway Inc. for a period of three years.
"We are very excited to become a part of the Joplin community and to welcome the plant's employees to the Annie's family," said John Foraker, CEO of Annie's. "The Joplin plant has been a valued manufacturing partner of Annie's since our introduction of Cheddar Bunnies crackers over a decade ago. We see a bright future in our snacks business, and I am confident that the capacity and capabilities provided by the Joplin plant and its dedicated workforce will help us achieve our significant long-term growth potential."