US: B&G Foods to buy snack firm Pirate Brands
B&G acquires Pirate Brands
US group B&G Foods has entered into an agreement to acquire all-natural snack company Robert's American Gourmet Food, also known as Pirate Brands.
The company will pay US$195m to the current owners of Pirate Brands, VMG Partners, Driven Capital Management and founder Robert Ehrlich.
"We are delighted to add Pirate Brands, including the iconic Pirate's Booty, to the B&G Foods family of brands. The acquisition of this business and its collection of growing natural snack foods, marks the second addition to our snack foods portfolio since we entered the category last October," said David Wenner, president and CEO of B&G Foods.
Pirate Brands' produces all-natural, trans fat and gluten free snack brands including Pirate's Booty, Smart Puffs and Original Tings. B&G projects that following the acquisition and integration, Pirate Brands will generate net sales of $80m to $90m and adjusted EBITDA of $18m to $20m on an annualised basis.
B&G Foods Announces Agreement to Acquire Pirate Brands, including Pirate's Booty® PARSIPPANY, N.J.--(BUSINESS WIRE)--Jun. 10, 2013-- B&G Foods, Inc. (NYSE: BGS) announced today that it has entered into an agreement to acquire Robert's American Gourmet Food, LLC dba Pirate Brands, a leader in the all-natural snack foods category, from VMG Partners, Driven Capital Management, founder Robert Ehrlich and certain other entities and individuals, for approximately $195 million in cash.
"We are delighted to add Pirate Brands, including the iconic Pirate's Booty, to the B&G Foods family of brands. The acquisition of this business and its collection of growing natural snack foods, marks the second addition to our snack foods portfolio since we entered the category last October," said David L. Wenner, President and Chief Executive Officer of B&G Foods.
"VMG Partners and Driven Capital Management, under the leadership of Mike Repole, have done an outstanding job with Pirate Brands over the past five years, building upon the fun, innovative, all-natural brand originated by Robert Ehrlich in 1987. We look forward to continuing to bring consumers great-tasting, all natural snack foods they have come to love and expect from Pirate Brands," continued Mr. Wenner.
"Consistent with our acquisition strategy, we expect the acquisition to be immediately accretive to our earnings per share and free cash flow."
Pirate Brands' deliciously baked, all-natural, trans fat and gluten free snack brands include Pirate's Booty, Smart Puffs and Original Tings. B&G Foods projects that following the acquisition, Pirate Brands will generate net sales of $80 million to $90 million and adjusted EBITDA of $18 million to $20 million on an annualized basis after the business is fully integrated into B&G Foods.
B&G Foods intends to fund the acquisition with the remaining net proceeds of its recently completed senior notes offering and additional revolving credit borrowings under its credit agreement. B&G Foods expects the acquisition to close in July 2013, subject to regulatory approval and the satisfaction of customary closing conditions.
Original source: B&G Foods
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