B&G Foods Inc. has entered into an agreement to acquire Specialty Brands of America Inc. and related entities from American Capital Ltd. for approximately $155 million in cash.
“We are excited to have reached an agreement to acquire Specialty Brands of America,” said David L. Wenner, President and CEO of B&G Foods. “We look forward to welcoming Specialty Brands into our family of brands. These brands complement very well our existing portfolio of brands and we believe that B&G Foods will be able to enhance the growth prospects of these brands. In addition, consistent with our acquisition strategy, we expect the acquisition to be immediately accretive to our earnings per share and free cash flow.”
B&G Foods projects that following the acquisition, Specialty Brands will generate on an annualized basis after being fully integrated into B&G Foods net sales of approximately $85 million and adjusted EBITDA of approximately $20 million.
Specialty Brands is a packaged foods company with a portfolio of differentiated brands such as Bear Creek Country Kitchens. Specialty Brands also offers Spring Tree, Cary’s, and MacDonald’s pure maple syrups and pancake syrups, New York Flatbreads, and Canoleo margarine.
B&G Foods expects the acquisition to close during the second or third quarter of 2014, subject to regulatory approval and the satisfaction of customary closing conditions.