Minneapolis-based Bellisio Foods is buying Austin Packaging Co. for more than $6 million, part of a strategy to continue increasing its frozen food business.
Privately held Bellisio, best known for its Michelina's frozen entrees, was the top bidder for Austin Packaging, which fell on hard times earlier this year after a major decline in its frozen pizza business. The deal hasn't closed yet.
The Austin-based company, which filed for receivership in April, still makes sauces and large frozen entree products for several "blue chip customers," said Jeff Tuttle, Bellisio's senior vice president of new business ventures. "Our company is focused on growth and this facility has a lot of capacity to support that growth from a manufacturing standpoint."
The Austin plant has an employee base of 120; Tuttle said Bellisio hasn't decided how many workers it will need.
Bellisio announced last month that it would buy Los Angeles-based Overhill Farms for $81 million, a deal that gives Bellisio full control over production and marketing of frozen foods under the Boston Market brand.
Bellisio was founded by Minnesota packaged food entrepreneur Jeno Paulucci and is currently owned by Centre Partners, a New York private equity group.
MIKE HUGHLETT
