Food Business News - July 19, 2011 - (Page 15)

Sun Capital acquires Contessa Premium Foods BOCA RATON, FLA. — Sun Capital Partners, Inc. has entered into an agreement to acquire the assets of Contessa Premium Foods, Inc., San Pedro, Calif., a manufacturer of frozen seafood and convenience meals for the retail and food service markets. Contessa filed for Chapter 11 bankruptcy protection this past January, and Sun Capital acquired the company through a 363 bankruptcy sale. The sale was approved on June 29 by the U.S. Bankruptcy Court for the Central District of California and is expected to close by the middle of July. Terms of the agreement were not disclosed. “The Contessa management team has built a great business, centered around best-in-class food quality and environmental friendliness,” said Jared Wien, vice-president at Sun Capital Partners. “Contessa’s already strong market position in the frozen seafood category and its state-of-theart manufacturing and processing capabilities have enabled the company to capitalize on the growing demand for high-end frozen seafood and convenience meals. We look forward to working with management and our commercial partners to continue to develop the Contessa brand and expand our private label relationships.” Founded in 1984, Contessa is a processor and distributor of seafood and frozen, bagged convenience meals. Its products include frozen seafood, vegetable stir-fries, sauce blends, pizza and fruits. Sun Capital Partners’ portfolio of food companies includes Creekstone Farms Premium Beef, Harry’s Fresh Foods, Sunrise Growers-Frozsun, and the Captain D’s chain of restaurants. FBN Discover the foresight and insight of ShipmentVision. ShipmentVision is an exclusive service from Union Pacific Distribution Services (UPDS), a subsidiary of Union Pacific. It lets you track and manage shipments across multiple railroads, multiple carriers or multiple transportation modes anywhere in the world. Reduce costs with ShipmentVision by: Knowing the location of your cargo down to the SKU. Improving your product flow with measurement tools. Discovering issues before they start with real-time exception reporting. Utilizing personalized proactive monitoring and problem resolution. Whether you choose Basic Monitoring or a Customized Service to meet a specific need, ShipmentVision delivers continuous visibility and actionable data in a simple format that will help you make informed decisions. No guesswork. No surprises. To find out more about ShipmentVision and the entire suite of tracking and monitoring services provided by UPDS, call (877) 885-1657. Reser’s Fine Foods to acquire Vaughan Foods will provide our valued customers with a wider range of today’s freshest foods. We look forward to partnering together as we move forward.” Under the terms of the agreement, Vaughan will become a subsidiary of Reser’s. Immediately following the closing, Vaughan stockholders will receive $1.58 per Vaughan share, which represents a 285% premium to the Vaughan closing stock price on May 13, 2011, the last trading day prior to the execution of the term sheet, when an agreement was reached. “We are extremely pleased with the offer from Reser’s Fine Foods,” said Herb Grimes, chairman of the board and c.e.o. of Vaughan Foods. “We believe the offer benefits our employees, their families and our investors. After 50 years of business, Vaughan Foods has found within Reser’s a company that is growing at a strong pace.” Vaughan sells to both the food service and retail sectors. Its products consist of fresh-cut vegetables, fresh-cut fruits, salad kits, prepared salads, dips, spreads, soups, sauces and side dishes. Vaughan’s primary manufacturing facility is in Moore, Okla. Its soups and sauces are manufactured in a facility in Fort Worth, Texas. FBN BEAVERTON ORE BEAVERTON, ORE. — Reser’s Fine Foods has entered into an agreement to acquire Vaughan Foods, Inc., Moore, Okla., a manufacturer of refrigerated foods, for $18.25 million in cash. The board of directors for Vaughan Foods has approved the transaction and it is now subject to the approval of Vaughan’s shareholders. The transaction is expected to be completed in the fall of 2011. “Our company is a family-owned business with a rich history of working closely with our employees, customers and suppliers,” said Mark Reser, president and chief executive officer of Reser’s Fine Foods. “The synergies between Vaughan Foods, Inc. and Reser’s Fine Foods, Inc. July 19, 2011 FOODBUSINESS NEWS ® 15

Table of Contents for the Digital Edition of Food Business News - July 19, 2011

Food Business News - July 19, 2011
U.S. rice production situation changes dramatically
Marketing standards for children’s products proposed
Campbell to invest less in sodium reduction
Editorial - Data transparency hugely important for markets
Dannon to invest $88 million in Ohio yogurt plant
Pfi zer may sell Nutrition business
Nestle Health Science acquires stake in Vital Foods
Hispanic consumers seek authentic menu options
Kraft names Timothy Cofer to European leadership
Gary Lane named c.e.o. of Ottens Flavors
Nestle to buy 60% interest in Chinese confectioner
Sun Capital acquires Contessa Premium Foods
Reser’s Fine Foods to acquire Vaughan Foods
Campbell to invest less in sodium reduction
Hamburger consumption on the rise
Dunkin’ looks to raise $461 million through i.p.o.
Buckhead Beef to build new facility
Global industrial processing of grains in slower growth
Higher adult obesity rates recorded in 16 states
More than 2,000 organizations in support of MyPlate
U.S. rice production situation changes dramatically
Washington - Agreement ends cross-border trucking dispute
Sodium Reduction - Conflicting views on sodium and mortality
Potassium chloride comes with taste issues
Children’s Nutrition - Questions arise about children and food allergies
DAIRY BUSINESS NEWS - Dairy ingredient innovations
DAIRY BUSINESS NEWS - Fonterra names chief executive officer
Dairy Business News - New OptiSol ingredient works with frozen yogurt
Dairy Business News - New Danisco system targets artisan ice cream
Dairy Business News - Regional ice cream maker ceases production
Dairy Business News - Dairy organizations team to form consortium
Dairy Business News - Harris sees consumers continue to focus on value, spending cuts
Dairy Business News - General Mills completes Yoplait acquisition
Dairy Business News - Shadow Beverages acquires Whey-Up brand
Dairy Business News - Dean Foods settles lawsuit for $140 million
Dairy Business News - Sargento Foods expands R.&D. staffi ng
New Product Trends - Beyond meat protein
New Food Products - Zatarain’s introduces frozen meals
New Food Products - Bear Naked launches Nut Cluster Crunch cereal
New Food Products - Kraft adds caulifl ower to new mac and cheese item
New Food Products - AdvancePierre Foods adds Graham Snackers
New Food Products - WhiteWave foods expands product line
New Food Products - Mott’s enters vegetable juice category
New Food Products - Orgain introduces shakes for children
New Food Products - Field Roast launches vegetarian frankfurter
INGREDIENT MARKET TRENDS - Spring wheat crop forecast 11% lower than 2010
Ingredient Markets
Supplier Innovations and News - Caravan launches base for single-serve items
Supplier Innovations and News - B vitamin supplier changes name to Prinova
Supplier Innovations and News -Testing method screens for Salmonella
Supplier Innovations and News - Cargill commits to 2015 sustainable palm oil goal
Supplier Innovations and News - European Commission approves stevia’s use in some foods
Supplier Innovations and News - Kemin hires technical sales manager
Supplier Innovations and News - Bell expands by buying facility
Ad Index
Food Business in the News

Food Business News - July 19, 2011