United Natural Foods Inc. (Nasdaq: UNFI) today announced that it has entered into a definitive agreement to acquire all outstanding stock of Haddon House Food Products Inc. and certain affiliated entities as well as certain real estate, in a cash transaction for approximately $217.5 million, subject to certain customary post-closing adjustments. Founded in 1960 by the Anderson family, Haddon House is a well-respected distributor and merchandiser of natural and organic and gourmet ethnic products throughout the eastern United States. Haddon has a diverse, multichannel customer base including conventional supermarkets, gourmet food stores and independently owned product retailers.
“Haddon House has a unique product and service offering that we expect to play an important role in our ongoing strategy to build out UNFI's gourmet and ethnic product categories across the country,” stated Steven Spinner, UNFI’s president and chief executive officer. “The Haddon House team has demonstrated exemplary customer service and growth over the last decade while also building a distinctive private label brands business. We are excited to have them join the UNFI family as we venture into new channels and markets together. I look forward to working with David Anderson, Sr. and David Anderson, Jr., both of whom will remain at the company in leadership roles, as we move this exciting service offering and product category across our companies and throughout the U.S."
“This transaction will provide us with greater operating scale and resources to further develop our product and service offering as we work with the UNFI team to broaden our geographic reach and route to market across complementary and new customer bases. We are excited about the opportunities this combination will create for consumers, employees, suppliers, and our stockholders,” stated David Anderson, Sr., president, Haddon House Food Products Inc.
Consummation of the transaction is subject to the satisfaction of customary closing conditions, including compliance with the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and is expected to close at the start of the fourth quarter of fiscal 2016. Upon closing, Haddon will be operated as a wholly-owned subsidiary of the UNFI. The transaction is expected to be accretive to UNFI's earnings in fiscal 2017. UNFI expects to finance the purchase price with a combination of available cash and borrowings under its revolving credit facility.