AdvancePierre Foods Acquires Allied Specialty Foods, Inc.

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Highly Strategic and Accretive Acquisition Expands Raw Philly Steak
Market Leadership, Provides Entry into Fully Cooked Offering

CINCINNATI–(BUSINESS WIRE)–AdvancePierre Foods (NYSE: APFH) (“AdvancePierre”), a leading national
producer and distributor of sandwiches, sandwich components and other
entrées and snacks, today announced it has completed the acquisition of
Allied Specialty Foods, Inc. (“Allied”), a pioneering manufacturer of
raw and cooked beef and chicken Philly steak products, from Steven Zoll,
for $60 million in cash, subject to certain post-closing adjustments.

“We are pleased to add Allied’s synergistic product platform and unique
capabilities to our existing portfolio and network,” said John Simons,
President and CEO of AdvancePierre. “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.”

Founded in 1956, Allied has been an innovative leader in the
manufacturing of raw and fully-cooked Philly steak products for
foodservice customers nationwide. Allied’s customer base is
predominantly in the foodservice industry, which it currently serves
from a 20,000-sq.-ft. manufacturing facility in Vineland, New Jersey,
with two cook lines, three raw slicing lines and one breakaway steak
line. In June 2016, the company began building a new 70,000-sq.-ft.
facility with seven raw slicing/breakaway lines and four cook lines,
which is expected to be completed during the first quarter of 2017.

“The addition of Allied further expands AdvancePierre’s market-leading
position in the Philly steak platform by providing entry into
fully-cooked product offerings,” said Dean Hollis, Chairman of the
AdvancePierre Board of Directors. “The transaction is a great example of
AdvancePierre’s strategy of strengthening and growing its core business
through disciplined, accretive acquisitions. We continue to evaluate a
significant number of highly attractive, synergistic acquisition
opportunities on the horizon and believe AdvancePierre is
well-positioned and capitalized to pursue future opportunities as they
arise.”

Transaction Consideration

AdvancePierre funded the total purchase price entirely from existing
cash. The company expects the acquisition will be accretive to fiscal
2017 earnings per share by $0.07 – $0.09, reflecting $11-13 million of
earnings before interest, taxes, depreciation and amortization (EBITDA)
including the realization of expected cost synergies.

About AdvancePierre Foods

AdvancePierre Foods Holdings, Inc. (NYSE: APFH), headquartered in
Cincinnati, Ohio, is a leading national producer and distributor of
value-added, convenient, ready-to-eat sandwiches, sandwich components
and other entrées and snacks to a wide variety of distribution outlets
including foodservice, retail and convenience store providers. With
revenues of $1.6 billion in 2015 and more than 4,000 employees, the
Company offers a broad line of products across all day parts including:
ready-to-eat sandwiches, such as breakfast sandwiches, peanut butter and
jelly sandwiches and hamburgers; sandwich components, such as fully
cooked hamburger and chicken patties, and Philly steaks; and other
entrées and snacks, such as country-fried steak, stuffed entrées,
chicken tenders and cinnamon dough bites. A fund managed by Oaktree
Capital Management, L.P., a Los Angeles-based investment firm, is the
majority shareholder of AdvancePierre Foods

Contacts

Vehr Communications
Laura Phillips
513-381-8347 (w)
513-325-9985
(c)
lphillips@vehrcommunications.com