January 22, 2010 / 12:50 PM / 8 years ago

UPDATE 1-Canada's Premium Brands buys meat supplier South Seas

* To buy South Seas Meats for C$2.1 mln

* Says deal to add to 2010 earnings

Jan 22 (Reuters) - Canada’s Premium Brands Holdings Corp PBH.TO said it acquired South Seas Meats Ltd, a Vancouver-based meat distributor, for about C$2.1 million ($2 million) and expects the deal to add to its 2010 earnings.

South Seas, which distributes Halal and other ethnic foods, in the Greater Vancouver area, has annual sales are about C$10.0 million and the deal is expected to generate about C$0.5 million in incremental earnings before interest, tax, depreciation, and amortization (EBITDA) in 2010, Premium Brands said.

“This transaction is consistent with our strategy of using bolt-on acquisitions to strengthen our differentiated distribution networks and expand our portfolio of specialty food products,” Chief Executive George Paleologou said in a statement.

In November, Premium Brands completed a C$35 million unsecured convertible debenture issue, which generated net proceeds of C$33.1 million. The company said proceeds of the offering would be used to fund acquisitions and capital projects.

Premium Brands shares closed at C$13.85 Thursday on the Toronto Stock Exchange. ($1=1.047 Canadian Dollar) (Reporting by Isheeta Sanghi in Bangalore; Editing by Gopakumar Warrier)

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