According to Smart Balance, it expects to realize future tax benefits with a present value of approximately $22m, resulting in an effective purchase price of approximately $103m.
The acquisition, as well as the refinancing of existing outstanding debt, will be financed with the proceeds of a new $280m senior secured credit facility.
The company expects to close the transaction in July, at which point it expects long-term debt to be approximately $240m.
Citigroup acted as exclusive financial advisor to Smart Balance over the acquisition.
Smart Balance chairman and CEO Stephen Hughes said with this transaction, the company will offer the most comprehensive portfolio of gluten-free products to address one of the fastest growing categories in the food industry.
"This portfolio of gluten-free brands and products will enable us to offer all retailers in North America a one stop strategic partner to address the growth in gluten-free," Hughes added.
Udi's, based in Denver, Colorado, markets gluten-free products under the Udi's Gluten Free Foods brand in the retail market and food service channels. Udi's is a leading brand in gluten-free bread and baked goods. In addition, it also markets other gluten-free products including frozen pizza and granola. In the twelve month period ended 31 March 2012, Udi's sales doubled to $60.9m.
