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Sanfilippo & Son Expands Portfolio with Squirrel Brand Acquisition
Illinois Ag Connection - 12/03/2017

John B. Sanfilippo & Son, Inc. announced that it has purchased certain assets and assumed certain liabilities of Squirrel Brand, L.P. for $31.5 million, of which $20.0 million was paid in cash and $11.5 million was financed by the seller through a three-year, unsecured promissory note. The cash portion of the acquisition price was funded from availability in the JBSS bank credit facility, and is subject to a net working capital adjustment.

Squirrel Brand is one of the nation's leading suppliers of indulgent and premium roasted nuts and snack mixes under its Squirrel Brand and Southern Style Nuts brands. These brands can be found in distribution channels such as coffee houses, on-line retailers, direct response television marketers, airlines and department stores in addition to grocery, warehouse clubs and mass merchandisers.

"The acquisition of the Squirrel Brand business provides us with an established customer base and branded product line that will help facilitate the execution of our Expanding Consumer Reach growth strategy, especially in our alternative distribution channels," said Jeffrey T. Sanfilippo, chairman and CEO of JBSS. "Squirrel Brand has been a customer in our Contract Packaging distribution channel for fourteen years, and we know well the Squirrel Brand team and their business." For our fiscal year 2017, Squirrel Brand's net sales were approximately $36.2 million, and our sales to Squirrel Brand were approximately $24.8 million. Consequently, we estimate the acquisition of the Squirrel Brand business would have added approximately $11.4 million to our net sales for our 2017 fiscal year1.

Before considering expenses associated with this transaction, the acquisition of Squirrel Brand would have added approximately $4.1 million to income from operations for our fiscal year 20172," Jeffrey Sanfilippo noted. "I am also pleased to announce that Brent Meyer, President of Squirrel Brand, has agreed to join us as a Senior Vice President. Over the years, Brent has continuously impressed us with his ability to build brands and his innovative approaches to marketing and distribution," stated Jeffrey Sanfilippo.

"I am thrilled to become part of the JBSS team," said Brent Meyer, President of Squirrel Brand, L.P. "I have enjoyed working with the JBSS contract packaging, innovation and operations teams for many years, and I am excited about the opportunity to leverage JBSS' considerable sales and marketing resources to further grow the Squirrel Brand business. Since we have worked together for so long, I know that we will get off to a great start," concluded Brent Meyer.

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