Canada Pension Plan will invest $200M in specialty food company Premium Brands

The Canada Pension Plan Investment Board has signed a deal to invest roughly $200 million in specialty food company Premium Brands Holdings Corp.

Premium Brands intends to use the cash to repay debt, finance organic and acquisition growth opportunities and for general corporate purposes.

Under the agreement, CPPIB will pay $76.02 per share for 2,631,000 shares in the company.

The shares represent approximately a 7.1 per cent stake in the Richmond, B.C.based company.

Concurrent with the deal, Premium Brands said it has also signed agreements with certain shareholders to raise an additional $60 million through the sale a total of 788,000 shares at $76.02 per share.

Shares in the company closed at $78.08 on the Toronto Stock Exchange on Friday.