B&G said Bear Creek Country Kitchens owner Specialty Brands of America would immediately boost earnings

B&G said Bear Creek Country Kitchens owner Specialty Brands of America would immediately boost earnings

US food group B&G Foods is to make another acquisition after striking a deal to buy margarine-to-soup manufacturer Specialty Brands of America from private-equity firm American Capital.

B&G said it would pay around US$155m for the business, which has brands including Bear Creek Country Kitchens soup, Canoleo margarine and Spring Tree maple syrup.

The deal is B&G's first of 2014 but, in 2013, the company snapped up three businesses - protein snacks firm Rickland Orchards, another snack maker, Pirate Brands, as well as nut brand TrueNorth.

"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 president and CEO David Wenner said.

B&G forecast Specialty Brands will generate net sales of around $85m and adjusted EBITDA of approximately $20m on an annualised basis following the acquisition.

The company expects the acquisition to close "during the second or third quarter of 2014", subject to regulatory approval.