Annie's finalizes purchase of snack plant
by Eric Schroeder
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BERKELEY, CALIF. — Natural and organic food company Annie’s, Inc. said it has completed the acquisition of Safeway’s snack manufacturing plant in Joplin, Mo., for $6 million plus the cost of inventory and supplies on hand at closing. The plant has been Annie’s primary manufacturer of cookie and cracker products since the inception of the company’s snacks business in 2002. Products made at the plant account for more than 50% of Annie’s overall snacks net sales and represent the majority of the plant’s total production volume.
Annie’s said the acquisition was funded with approximately $7.4 million in cash on hand. In addition to the closing, Annie’s entered into a supply agreement to produce products on behalf of an affiliate of Safeway Inc. for a period of three years.
“We are very excited to become a part of the Joplin community and to welcome the plant’s employees to the Annie’s family,” said John Foraker, chief executive officer of Annie’s. “The Joplin plant has been a valued manufacturing partner of Annie’s since our introduction of Cheddar Bunnies crackers over a decade ago. We see a bright future in our snacks business, and I am confident that the capacity and capabilities provided by the Joplin plant and its dedicated workforce will help us achieve our significant long-term growth potential.”