Boulder Brands, Inc. BDBD Price $11.03 Change 0.00 Volume 0 Date as of 01/15/16 4:00 p.m. ET Minimum 20 minute delay
|View printer-friendly version|
|Boulder Brands, Inc. Announces Acquisition of EVOL Foods|
A Leading Brand in Natural Frozen
Boulder, CO (December 23, 2013) - Boulder Brands, Inc. (NasdaqGM: BDBD) today announced it acquired 100% of the equity interests of Phil's Fresh Foods, LLC, owner of EVOL Foods ("EVOL"), for $48 million, before future tax benefits. Boulder Brands is buying EVOL from founder Phil Anson and a group of investors including Alliance Consumer Growth and an investment vehicle created by Revelry Brands and Spier Capital Management.
Based in Boulder, CO, EVOL manufactures and markets premium frozen convenience foods with a focus on pure and simple ingredients. Current products include burritos, quesadillas, entrees, bowls, and skillet meals. The Company's philosophy on food is simple - 'Love what you eat.' EVOL offers great-tasting foods made with pure and simple ingredients, including those that are antibiotic- and hormone-free, and are free of artificial preservatives or flavors and made with organic ingredients. In the twelve month period ending December 31, 2013, EVOL net sales are estimated to grow 70% to $17.0 million.
As first mentioned above, on December 20, 2013, Boulder Brands increased its senior secured term loan credit facility, at the same interest rate as the original loan, by $25 million to $275 million. In addition, the Company amended the financial covenants on its revolving credit facility to increase the senior secured funded debt-to-EBITDA covenant by 0.25x for each quarterly period.
Commenting on the announcement, Chairman and Chief Executive Officer Stephen Hughes stated, "While this acquisition is relatively small in size, we believe it to have significant potential for Boulder Brands, as EVOL is a category-elastic brand in an exciting segment that will further accelerate our growth rate and diversify our mix to high-growth natural brands. Consumers are demanding pure and simple ingredients in the food they buy, and retailers are in the process of renovating their freezers with healthier alternatives. With EVOL, Boulder Brands will participate in this exciting growth opportunity with a newly defined 'pure and simple' food platform."
Furthermore, Mr. Hughes stated, "We see considerable revenue and platform synergies with EVOL and Udi's. EVOL has built a strong brand proven in the natural channel and a clear proof of concept in conventional retail, resulting in considerable white-space opportunity in conventional, mass and club channels. In addition, its portfolio of products is the perfect complement to Udi's wide range of gluten-free frozen baked goods. The EVOL team, led by Phil Anson, brings expertise we believe essential to building out both our EVOL and Udi's frozen platforms. This portfolio, which will include EVOL and Udi's® Gluten Free frozen pizzas, burritos and entrees, will enable us to offer all retailers in North America a strategic partner to help renovate their freezer cases."
"We are very impressed with the EVOL Foods management team. Both companies have similar missions and values of making healthier food that tastes delicious; and done with transparency and accountability. Through this combination, we believe Boulder Brands' core competencies in sales, marketing and product development will help EVOL realize its growth potential, ultimately creating long-term value for our shareholders, and exciting opportunities for our new and existing employees," concluded Mr. Hughes.
"I know I speak for the entire EVOL team when I say we are enthusiastic about joining the Boulder Brands organization and keeping the company in our hometown of Boulder," stated Phil Anson, Co-Founder and Chief Operating Officer. "This exciting change of control will offer us the ability to further our mission and catapult growth of the EVOL Brand as we continue to re-define frozen convenience food and lead a sea change in natural and organic frozen category growth. Both Steve and I are aligned in our vision and look forward to working together to establish and grow the pure and simple health and wellness platform."
Boulder Brands was advised by Fried, Frank, Harris, Shriver & Jacobson LLP. The sellers were advised by Houlihan Lokey and Robinson & Cole LLP.
About Boulder Brands, Inc.
About EVOL Foods
Replication or redistribution of EDGAR Online, Inc. content is expressly prohibited without the prior written consent of EDGAR Online, Inc. EDGAR Online, Inc. shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.