Dive Brief:
- Ready Pac Foods Inc., maker of single-serve salads, is offering itself up for acquisition by a larger manufacturer in the next two years, CEO Tony Sarsam told Bloomberg.
- The company reported sales of $677 million last year and is currently owned by private equity firm H.I.G. Capital.
- Ready Pac has positioned itself as a solution for manufacturers looking to push portfolios in the perimeter of grocery stores, where consumers look for fresh foods.
Dive Insight:
Bloomberg named PepsiCo, Hain Celestial, and Hormel as companies actively looking for acquisition targets. Of those companies, Hain Celestial is more of a possibility than the other two. But while Ready Pac is made with fresh, whole foods, it doesn't position its brand as all-natural or organic (except this year's new line of organic and non-GMO salads), which means it might not quite fit Hain's all-natural and organic-dominated portfolio.
Another potential buyer, WhiteWave has had a solid track record of acquisitions in recent years, including Vega Foods, Wallaby yogurt, and, most relevant to Ready Pac, Earthbound Farm. Ready Pac could be an extension of the organic salads segment WhiteWave has with Earthbound.
Ready Pac could also be a good fit for Campbell, judging by Campbell's recent acquisition of Garden Fresh salsa.
Making single-serve salads means Ready Pac also has the convenience factor on its side, an increasingly important factor in consumers' purchasing decisions. Convenience has mainly been associated with snacking. But Ready Pac introduces a way for manufacturers to tap convenience while offering consumers a full, fresh meal, which is not as common.