Premium Brands Income Fund

Premium Brands Income Fund

November 24, 2006 11:30 ET

Premium Brands Income Fund Announces Acquisition

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 24, 2006) - Premium Brands Income Fund (TSX:PBI.UN) a leading producer, marketer and distributor of specialty branded consumer food products announced today that it has entered into an exclusive agreement with The Spectra Group of Great Restaurants Inc. to purchase the Creekside Custom Foods business, which includes the Bread Garden line of branded fresh products. The transaction is structured as an asset purchase and is expected to close on December 10, 2006.

Creekside is based in Vancouver, BC and is a leading manufacturer and distributor of a variety of "grab-and-go" fresh food products such as sandwiches, pastries, muffins and sushi for the convenience store channel and other alternative retail formats. Over the past five years it has pioneered this new and exciting product category and correspondingly, its primary brand, Bread Garden, leads the premium "grab-and-go" fresh food category in the Greater Vancouver Region.

"There are significant growth opportunities in the "grab-and-go" fresh food category as consumers continue to be pressed for time and look for a balance between healthy eating and convenience," said Mr. George Paleologou, President. "The purchase of Creekside further strengthens our competitive position in this exciting category, expands the size and improves the operating efficiencies of our fresh food distribution network, and enhances the depth and variety of our "grab-and-go" fresh food product offerings."

The purchase price of approximate $4.0 million will be funded through Premium Brands' existing lines of credit.

Premium Brands owns a broad range of leading branded specialty food businesses with manufacturing and distribution facilities located in British Columbia, Alberta, Saskatchewan, Manitoba and Washington. In addition, the Fund owns proprietary food distribution and wholesale networks through which it sells both its own products and those of third parties to approximately 20,000 customers. The Fund's family of brands includes Grimm's, Harvest, McSweeney's, Quality Fast Foods, Hempler's, Hygaard, Harlan's and Gloria's Catering.

Contact Information

  • Premium Brands Income Fund
    George Paleologou
    (604) 656-3100
    Premium Brands Income Fund
    Will Kalutycz
    (604) 656-3100