United Natural Foods Inc. (UNFI) has agreed to acquire Haddon House Food Products Inc., – a distributor and marketer of natural, organic, and gourmet ethnic foods throughout the Eastern U.S., including certain affiliates and real estate assets, in a deal worth $217.5 million.

 

Given Haddon House’s multi-channel customer base including supermarkets, gourmet food stores, and independent product retailers, the acquisition is expected to play a role in UNFI’s growth strategy of building out its gourmet and ethnic product categories across the U.S.

 

“Haddon House has a unique product and service offering that we expect to play an important role in our ongoing strategy to build out UNFI's gourmet and ethnic product categories across the country,” stated Steven Spinner, UNFI’s President and Chief Executive Officer in a company statement.  “The Haddon House team has demonstrated exemplary customer service and growth over the last decade while also building a distinctive private label brands business. We are excited to have them join the UNFI family as we venture into new channels and markets together.”

 

The deal is also expected to benefit Haddon House with the scaling up of its operations and increased access to resources to develop the company’s products and offerings and the expansion of its geographic scope through new customer bases.

 

“We are excited about the opportunities this combination will create for consumers, employees, suppliers, and our stockholders,” added David Anderson, Sr., President, Haddon House Food Products, Inc.

 

If all closing conditions and requirements are met, the acquisition is expected to close in the fourth quarter of 2016 and be accretive to UNFI’s earnings in fiscal year 2017. Following the completion of the deal, Haddon House will operate as a wholly-owned subsidiary of UNFI, and both David Anderson Sr. and David Anderson Jr. will remain in their leadership roles in the company.