Rich Products has acquired a pair of businesses to expand its line of pizza products and add a line of milkshakes and other frozen beverages that are sold in convenience stores, the Buffalo-based food company said Tuesday.
Rich Products also said it has formed a joint venture with another food products manufacturer to market and sell a line of cakes and cookies produced by its partner at a new factory near Houston.
Together, the three deals expand Rich Products' dessert and pizza product offerings, while expanding its presence in the convenience store market, said Dwight Gram, a company spokesman.
He declined to say how much the acquisitions – the fifth and sixth purchases Rich Products has made since 2010 and its 15th and 16th since 2000 – would add to the privately held firm's $3 billion in annual sales.
"This is a significant investment by the Rich family in our business," he said. "It is a significant opportunity."
The deals are not expected to immediately lead to any new jobs at Rich's headquarters and research center on Niagara Street, which currently has about 650 employees, Gram said.
In one deal, Rich acquired Goglanian Bakeries, a family-owned firm in southern California that makes a line of pizza crusts, flatbreads and pitas that Gram said will complement the frozen pizza dough that Rich Products already makes. The pizza products primarily are sold to food service firms.
It also adds four manufacturing plants to Rich Products' stable, including a plant that is expected to open during the first quarter of next year in Chicago, along with sites in Rochester, Santa Ana, Calif., and Fountain Inn, S.C.
"We now have a complete pizza product offering," Gram said. "It really gives us a national manufacturing footprint."
Rich Products' purchase of f'real foods makes the company a bigger player in the convenience store market by adding a line of milkshakes, smoothies and frozen coffee beverages that are sold in more than 9,000 convenience store and food service locations across the United States and Canada. The deal also gives Rich Products f'real's patented blending equipment, which is used to mix the beverages.
"It provides us with the opportunity to enter in a completely new product category and gives us additional in-roads into the high-growth convenience store segment," Gram said.
Rich Products also formed a joint venture with Stolbun Group in a dessert-making venture called Twin Star Bakery. The venture makes fully finished cakes, along with baked and iced cookies, at a recently opened factory near Houston. Stolbun will manage Twin Star's production and its research and development, while Rich Products will handle its product marketing and sales efforts, mainly through its In-Store Bakery division.
"These acquisitions provide terrific growth and add to the momentum we have," said William Gisel, Rich Products' president and chief executive officer, in a statement.?