Boulder Brands (NASDAQ:BDBD) announced the $48 million acquisition of EVOL Foods on December 23. The acquisition gives Boulder Brands a broader product range with EVOL's frozen burritos, entrees and quesadillas. The acquisition is relatively small and EVOL will only contribute about 5% of the company's revenue in 2014. However, it has several strategic implications for Boulder Brands. On the positive side, EVOL gives Boulder Brands a more diversified product mix and new avenues for growth. However, questions about the growth prospects of the gluten-free business still linger. I view the acquisition as a positive for Boulder Brands, but I am not yet ready to buy the stock.
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