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Faribault Foods acquires S&W brand from Del Monte -Minneapolis/St. Paul Business Jo... Page 1 of 2 <br />Minneapolis/St. Paul Business Journal -June 26, 2006 <br />httpaltwincitiea.biziournals.com/twincities/stories1200fi1061261st~6. h_t_ml <br />.~~~ ~ttNNfAptt~S ~~~NAI~ <br />BUSINESS PULSE SURVEY: What is the bast addition to the Twin Cities culture scene? <br />Faribault Foods acquires S&W brand from <br />Del Monte <br />MinneapalislSt. Paul Business Journal -June 23, 2066 by Nicole Garrison-S~naer Staff Writer <br />Faribault Foods Inc. just added another brand to its growing portfolio of food products. <br />INFORMATION <br />The Minneapolis-based food company bought S&W Fine Foods, a line of canned beans and pastas, <br />from De] Monte Foods Co. of San Francisco. The cash acquisition will increase Faribault's revenue <br />of $20o million by another $2,5 million. <br />S&W is distributed primarily in the Western United States. Faribault also owns Sun Vista, a line of <br />canned beans sold in California and Arizona. <br />"Having a bigger presence on the West Coast is a real plus," said John Trucano, founder and <br />president of Eagan-based Acorn Financial Corp, an investment-banking firm focused on food <br />companies. "Retailers generally want to buy more products from fewer suppliers." <br />Faribault had a co-packaging contract for the S&W line before the purchase under which Faribault <br />produced some products for S&W. <br />Faribault was founded in t895 as avegetable-canning company. In r9~6, the company reported $5 <br />million in revenue. In t98o, Reid MacDonald and three siblings took over the company from their <br />parents and he became CEO. <br />The S&W acquisition is part of Faribault's long-term strategy to own regional brands that are <br />market-share leaders. In recent years, the company has acquired Kuner's of Colorado, Chilli Man <br />of Missouri, Mrs. Grimes of Iowa, Sun Vista of California and Pride of Tennessee. <br />MacDonald would not disclose the purchase price of S&W, but none of Faribault's buys have been <br />huge. <br />"We typically buy businesses that are not too large for us to digest," MacDonald said. "And mostly <br />we do things that we already know how to do." <br />One recent exception to that rule was the company's purchase last year of SoftPac Industries Inc. <br />m Elk River. SoftPac fills stand-up juice pouches, similar to Kraft's Capri Sun line, for grocery <br />retailers and wholesalers, mass merchandisers and dollar-store chains. That line falls under <br />Faribault's private-label business. <br />More purchases are likely, MacDonald said. <br />"We've basically grown by acquisitions, and we Il continue to do that in the incremental way we've <br />always done it," he said. <br />ngarrison@bizjournals.com ~ (6iz) 288-ziiz <br />All contents of this site ©American City Business Journals Inc. All rights reserved. <br />http://twincities.bizjournals.com/twincities/stories/2006/06/26/story6.htm1?t=printable 6/26/2006 <br />