United Natural Foods has signed an agreement to acquire all of the stock of Tony’s Fine Foods, a distributor of perishable food products, for nearly $195.3m.
Founded in 1934, Tony's primarily sells its products to retail and specialty grocers, food service customers and other distribution companies. Its product portfolio includes a range of specialty protein, cheese, deli, food service and bakery goods.
For its fiscal year ended 30 September 2013, Tony's reported net sales of about $714m.
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 late in Q4 2014.
Upon completion of the deal, Tony's will be operated as a wholly-owned subsidiary of United Natural Foods.
United Natural Foods president and chief executive officer Steven Spinner said natural protein and specialty perishable products are a very important part of the company's future.
"Tony's Fine Foods will serve as our platform for building out our national perimeter product offering. These fast growing products will help us further expand market share as we build out our retail store SKU offering," Spinner added.
