agreed to buy the Nancy's Specialty Foods quiche and desserts business from affiliates of Kohlberg & Co.
Terms weren't disclosed, but Pittsburgh-based Heinz said the Nancy's business posts about $64 million in annual sales. The snack products are mostly sold through grocery stores and warehouse clubs, but some are sold to restaurants as well, Heinz said.
The company said the deal adds its growing portfolio of frozen appetizers, snacks and dessert brands, which includes Delimex, TGI Friday's, Bagel Bites and Poppers. "This acquisition is perfectly aligned with Heinz's strategy to focus on core areas of expertise to drive profitable growth," CEO William R. Johnson said. "The addition of the Nancy's products to our frozen snacks, appetizers and desserts business further cements Heinz as the premier supplier in this growing segment."
Heinz said it expects the acquisition to be accretive in its first full fiscal year.
On Tuesday, Heinz was flat at $36.78.