United Natural Foods Announces Acquisition Of An Organic Food Producer

United Natural Foods, Inc. (NASDAQ: UNFI), a distributor of natural, organic and specialty foods, announced on Thursday that it has agreed to acquire Nor-Cal Produce, a family-owned distributor of organic produce and other fresh products in Northern California.

United Natural Foods will pay approximately $68.6 million in cash to acquire Nor-Cal Produce.

Related Link: United Natural Foods Plunges 15% Following Disappointing Outlook, Acquisition Announcement

Nor-Cal Produce recorded sales of approximately $151 million during the 12 months ended February 29, 2016. The deal is expected to be accretive to United Natural Foods' earnings in fiscal 2017.

"We are excited to expand the breadth of our fresh perimeter product assortment and distribution network with the acquisition of Nor-Cal," commented Steven Spinner, UNFI's President and Chief Executive Officer. "This acquisition further illustrates UNFI's growth into fresh and we look forward to working with Todd Achondo, President of Nor-Cal, who will remain at the company in a leadership role, and their entire team."