• Paramus, N.J. (May 31, 2012) – Smart Balance, Inc. (NasdaqGM: SMBL) announced it has signed a definitive agreement to acquire Udi’s Healthy Foods, LLC (Udi’s) for $125 million in cash from majority shareholder Hubson Acquisition, LLC, an affiliate of E&A Industries based in Indianapolis, the family of founder Udi Bar-on, and other minority holders.
    Udi’s grew from $4.3 million in net sales in 2009 to an annualized run-rate of $72.4 million in net sales, based on first quarter 2012 results.

    Based in Denver, CO, Udi’s markets gluten-free products under the “Udi’s Gluten Free Foods” brand in the retail market, and since mid-2011, food service channels. Udi’s is a leading brand in gluten-free bread and baked goods. In addition, Udi’s markets other gluten-free products including frozen pizza and granola.

    Commenting on the transaction, E&A Industries’ Partner and CEO of Udi’s Healthy Foods Devin Anderson stated, “this is an excellent development for the Udi’s organization, as it represents an outstanding opportunity to bring together two companies which share similar corporate visions, principles and growth objectives committed to meeting consumer needs. We are proud of our grassroots, digital and social media strategies that engaged consumers to help Udi’s grow from $4.3 million in net sales in 2009 to an annualized run-rate of $72.4 million in net sales, based on first quarter 2012 results. Combining our organizations will allow Udi’s to continue on its significant growth path and leverage Smart Balance’s strategic leadership. We look forward to working together to grow its health and wellness platform and are confident the Udi’s business will thrive under Smart Balance’s direction.”
    Commenting on the announcement, Smart Balance Chairman and Chief Executive Officer Stephen Hughes stated, “we are excited to add Udi’s Healthy Foods to our portfolio of health and wellness brands. Udi’s has built a strong brand with a very loyal following in gluten-free bread, which includes over 1,000,000 ‘Friends of Udi’s’ social marketing followers. Udi’s leading bread and bakery portfolio is the perfect complement to Glutino’s wide range of grocery products. With this transaction, we will offer the most comprehensive portfolio of gluten-free products to address one of the fastest growing categories in the food industry. This portfolio of gluten-free brands and products will enable us to offer all retailers in North America a one stop strategic partner to address the growth in gluten-free.”

    About E&A Industries, Inc.

    E&A Industries partners, Al Hubbard and Devin Anderson, have a long history of acquiring and growing companies throughout North America and Europe. E&A is not a private equity firm but experienced operators who partner with small business owners to create long term capital appreciation through sales and marketing expertise, disciplined management and organic growth. Hubbard and Anderson acquired a majority share of Udi’s Healthy Foods in April 2010.

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