United Natural Foods Inc (Nasdaq: UNFI) has acquired all the outstanding stock of Nor-Cal Produce Inc and an affiliated entity as well as certain real estate, in a cash transaction for about $68.6 million, subject to certain customary post-closing adjustments.
Founded in 1972, Nor-Cal is a family-owned-and-operated distributor of conventional and organic produce and other fresh products in Northern California, with primary operations located in West Sacramento CA. Annual net sales for Nor-Cal for the 12 months ended February 29, 2016 were approximately $151 million.
The acquisition further highlights UNFI’s continued drive into fresh, and when combined with the company’s existing produce operations, gives it a national presence in produce. This transaction is expected to be accretive to the company’s earnings in fiscal 2017. The firm financed the purchase price with a combination of available cash and borrowings under its revolving credit facility.
“We are excited to expand the breadth of our fresh perimeter product assortment and distribution network with the acquisition of Nor-Cal,” said Steven Spinner, UNFI’s president and chief executive officer. “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.”
“We look forward to working together to grow the combined company and better serve our customers nationwide,” said Achondo.
For more information, go to www.unfi.com.
