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Diving overview:
- B&G Foods is acquiring Del Monte Foods’ broth and staples business, which includes the College Inn and Kitchen Basics brands, for approximately $110 million.
- B&G announced that it was selected as the winner in the broth and stock business category through a ‘competitive auction process’. Del Monte Foods bankruptcy.
- The acquisition is expected to close in the first quarter following court approval and the sale of Del Monte’s other unrelated assets to B&G.
Dive Insights:
The purchase of broth and the stock offering marks a departure for B&G, which has been selling brands to focus and reduce debt.
Over the past few years, food giants have Selling 2 tomato brandsthat vegetable sweat and Green Giant Canning Enterprises And the snack line return to nature. So did the company. Green Giant is exploring the sale of its refrigeration division..
With College Inn and Kitchen Basics, B&G is adding brands that complement its existing portfolio and provide valuable pantry staples to consumers who cook at home.
Inflation has forced many people to cut back on their spending and eat out less in favor of eating more meals at home. The change provides a favorable tailwind for brands like College Inn and Kitchen Basics, as well as other products owned by B&G, including Crisco, Ortega and Victoria sauces.
“This acquisition is consistent with our long-standing acquisition strategy of targeting established brands with defensible market positions and strong cash flow at reasonable purchase price multiples,” B&G CEO Casey Keller said in a statement.
B&G Foods expects the acquisition to be immediately accretive to earnings per share, adjusted EBITDA and free cash flow. New Jersey Company Posted by Sales approximately $2 billion For fiscal year 2024, the College Inn and Kitchen Basics brands were estimated to generate annual net sales in the range of approximately $110 million to $120 million.
