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May 15, 2019

B&G Foods snaps of US ingredients maker Clabber Girl

The diversified US food group B&G Foods has snapped up a local ingredients manufacturer after earlier flagging potential acquisitions. 

By Dean Best

The diversified US food group B&G Foods has snapped up local ingredients manufacturer Clabber Girl Corp. for an undisclosed sum.

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The food and grocery sector thrived during the pandemic, largely due to the shutdown of the food service industry and the sector’s subsequent necessity, panic-induced bulk purchasing, and spending more time at home. The market has grown as a result of inflation. Consumer unwillingness to go out and socialize, and the reopening of several hospitality facilities, helped maintain the demand for groceries, particularly online, in 2021. As consumer behavior changes, we consume more food and drink at home, and inflation increases basket sizes. GlobalData predicts that the sector will continue to hold a higher share than had been predicted prior to the pandemic. This is true despite the fact that the food and grocery sector's share of overall retail will decline from its peak in 2020. This report will discuss market forecasts and key themes in the global food & grocery industry in 2022 and beyond. It covers:
  • Market drivers and inhibitors
  • Five-year forecasts and the impact of COVID-19
  • The performance of the online channel versus offline
  • Major trends in the market including rapid delivery, ambient retailing, supply chain disruption, and inflation
Assess developments within this sector to help your business thrive in 2022 and beyond.
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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.” 

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.

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Free Report
img

What’s the forecast for the food and grocery industry?

The food and grocery sector thrived during the pandemic, largely due to the shutdown of the food service industry and the sector’s subsequent necessity, panic-induced bulk purchasing, and spending more time at home. The market has grown as a result of inflation. Consumer unwillingness to go out and socialize, and the reopening of several hospitality facilities, helped maintain the demand for groceries, particularly online, in 2021. As consumer behavior changes, we consume more food and drink at home, and inflation increases basket sizes. GlobalData predicts that the sector will continue to hold a higher share than had been predicted prior to the pandemic. This is true despite the fact that the food and grocery sector's share of overall retail will decline from its peak in 2020. This report will discuss market forecasts and key themes in the global food & grocery industry in 2022 and beyond. It covers:
  • Market drivers and inhibitors
  • Five-year forecasts and the impact of COVID-19
  • The performance of the online channel versus offline
  • Major trends in the market including rapid delivery, ambient retailing, supply chain disruption, and inflation
Assess developments within this sector to help your business thrive in 2022 and beyond.
by GlobalData
Enter your details here to receive your free Report.

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