The diversified US food group B&G Foods has snapped up local ingredients manufacturer Clabber Girl Corp. for an undisclosed sum.
New York-listed B&G, which has a product portfolio stretching from meals to sauces and snacks, acquired the firm from Indiana-based wholesale food supplier Hulman & Company, according to a statement today (15 May). The purchase was funded through cash on hand and B&G’s existing credit facilities.
Clabber Girl produces ingredients under its namesake brand and also the Rumford, Davis, Hearth Club and Royal brands of retail baking powder, baking soda and corn starch. It also makes the Royal brand of dessert mixes for foodservice outlets.
Earlier this month, B&G’s president and chief executive Kenneth Romanzi said the company, which owns the Green Giant vegetable brand, was seeking out acquisition opportunities after reporting a drop in first-quarter sales and profits. Romanzi replaced Bob Cantwell in April after the former CEO retired.
He said today: “This acquisition is consistent with our long-standing acquisition strategy of targeting well-established brands with defensible market positions and strong cash flow at reasonable purchase price multiples. Clabber Girl is the number one manufacturer of branded retail baking powder and also holds leadership positions in baking soda and corn starch.”
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B&G expects Clabber Girl to contribute US$70-75m in annualised net sales, with the acquisition to be immediately accretive to earnings per share and free cash flow.
