Smart Balance Inc. has agreed to pay $125 million in cash to acquire Denver-based Udi's Healthy Foods LLC, which makes Udi's Gluten Free Foods products.
Smart Balance, Paramus, N.J., is buying Udi's from majority shareholder Hubson Acquisition LLC and minority shareholders, including the family of founder Udi Bar-on. The transaction is expected to close in July.
Udi’s markets gluten‐free products under the “Udi’s Gluten Free Foods” brand in the retail market, and since mid‐2011, foodservice channels. Udi’s is a leading brand in gluten‐free bread and baked goods. In addition, Udi’s markets other gluten‐free products, including frozen pizza and granola. Udi's reported sales of $60.9 million in the 12 months that ended March 31. The companies said Udi's had $4.3 million in net sales in 2009.
Smart Balance, which sells buttery spreads, cooking sprays and other products, bought another gluten-free food maker, Glutino, in August 2011.
“Udi’s leading bread and bakery portfolio is the perfect complement to Glutino’s wide range of grocery products,” Smart Balance chairman and chief executive officer Stephen Hughes said in a press release. “With this transaction, we will offer the most comprehensive portfolio of gluten‐free products to address one of the fastest growing categories in the food industry. This portfolio of gluten‐free brands and products will enable us to offer all retailers in North America a one-stop strategic partner to address the growth in gluten‐free.”