Artisanal Brands Inc. (fka AHFP)

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American Home Food Products acquires Artisanal Cheese
Friday 08/17/2007 5:05 AM ET - Datamonitor

American Home Food Products has acquired Artisanal Cheese, a US-based distributor of specialty food products.

American Home Food Products has said it intends to rapidly expand the distribution of Artisanal's product line by executing on strategic relationships with major companies in each of the four complimentary distribution channels that Artisanal's product serves: foodservice, retail, print catalogue and E-commerce. The company's plan is to make Artisanal the leading national brand for best-in-class cheeses.

In conjunction with the acquisition of Artisanal, the company undertook a $5 million private placement of redeemable convertible preferred stock. Furthermore, the company sold its royalty-generating assets in building materials for approximately $1 million and used this cash to retire certain existing debts as it satisfied the remaining debts through a tax-free exchange of debt for equity.