Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Littlejohn Said to Consider Sale of Prepared-Foods Maker CTI

April 4 (Bloomberg) -- CTI Foods Holding Co.’s owner, private-equity firm Littlejohn & Co., is exploring a sale of the prepared-foods supplier that may fetch about $500 million, two people familiar with the matter said.

Littlejohn is working with Morgan Stanley on the potential sale of Wilder, Idaho-based CTI, which makes fajita meat, burgers, soups and sauces for restaurants, said the people, who asked not to be named because the discussions are private.

Littlejohn declined to comment on a potential sale or the value of a deal. Akhilesh Raina, a Morgan Stanley spokesman, declined to comment. CTI Chief Executive Officer Bobby Horowitz didn’t return calls and declined to comment through an assistant.

CTI has expanded in the U.S. after Littlejohn, based in Greenwich, Connecticut, recapitalized the company in 2010. Last year, CTI acquired a ground-beef plant in Pennsylvania and bought Custom Food Products LLC to add plants in California and Kentucky, according to the company’s website. CTI also runs facilities in Texas.

CTI generated more than $700 million in sales in the year through Sept. 8, according to a Dec. 14 report from Moody’s Investors Service.

Moody’s in December maintained its rating for CTI at B2, five levels below investment grade, while boosting the outlook to positive from stable partly because CTI’s volumes are rising and the new products and distribution it has gained from recent acquisitions will help it expand on the U.S. East Coast.

U.S. meat processors such as Smithfield Foods Inc. and Tyson Foods Inc. have made deals to expand their packaged-meat and prepared-foods businesses to smooth out volatility from livestock and feed costs.

In February Smithfield, the world’s largest hog producer, announced a joint venture with Kansas City Sausage Co., and Tyson, the largest U.S. meat processor, said it would buy tortilla maker Don Julio Foods.

To contact the reporters on this story: Shruti Date Singh in Chicago at ssingh28@bloomberg.net; David Welch in New York at dwelch12@bloomberg.net

To contact the editors responsible for this story: Steven Frank at sfrank9@bloomberg.net; Jeffrey McCracken at jmccracken3@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.