Organic food producer United Natural Foods (UNFI) has acquired the outstanding stock and an affiliate along with certain real estate of Nor-Cal Produce for $68.6m cash.
With the Nor-Cal Produce acquisition, United Natural Foods intends to strengthen its focus on fresh produce market. The combined business is intended to provide United Natural Foods a national presence.
The completion of the transaction is subject to certain post-closing adjustments. The transaction is expected to be accretive to the Company's earnings in fiscal 2017.
United Natural Foods has funded the acquisition through a combination of available cash and borrowings under its revolving credit facility.
UNFI president and CEO Steven Spinner said: "This acquisition further illustrates UNFI's growth into fresh and we look forward to working with Todd Achondo, President of Nor-Cal, who will remain at the company in a leadership role, and their entire team."
Nor-Cal president Todd Achondo said: "The entire Nor-Cal team is excited to be a part of UNFI. We look forward to working together to grow the combined company and better serve our customers nationwide."
Nor-Cal is a family-owned distributor of conventional and organic produce and other fresh products in Northern Carolina. The company's primary operations are located in West Sacramento, California.
United Natural Foods distributes more than 85,000 products to more than 40,000 customer locations throughout the US and Canada. The company clientele includes a wide range of retail formats such as conventional supermarket chains, natural product superstores, independent retail operators and the food service channel.
Earlier this month, United Natural Foods entered into an agreement to acquire Haddon House Food Products for $217.5m cash, to expand its ethnic product portfolio and distribution capability.
UNFI president and CEO Steven Spinner had said: "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."
