CINCINNATI -- Flush with newly raised cash, AdvancePierre Foods Holdings Inc. has bought a stake in the cheesesteak category. The company recently acquired Allied Specialty Foods Inc. for $60 million in cash.
Allied operates a 20,000-sq.ft. manufacturing facility in Vineland, NJ, and it began building a 70,000-sq.ft. facility in June. The company was founded 60 years ago as a provider of meats for Philly cheesesteaks to restaurants and foodservice providers. It sells other steaks and chicken products, too.
"The Philly steak category is primed for growth, and this acquisition strengthens our position, brings us additional products and production capacity and expands our geographic reach," said AdvancePierre chief executive John Simons.
AdvancePierre, which provides sandwiches and entrees to vending operators and other foodservice providers, already has a Philly steak line. The Allied deal could greatly expand its market share in that category.
AdvancePierre generated $1.6 billion in revenue last year; it raised $449 million in an IPO completed on July 14.