New Jersey-based food group, B&G Foods, has acquired the New York Style and Old London brands from Chipita America in an all-cash deal worth around US$62.5m.
The deal marks the company’s first foray into the snacks category.
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B&G said it expects the brands to contribute net sales of around $45m to $50m in 2013, and EBITDA of around $8m to $9m. The acquisition includes a production plant in Yadkinville, North Carolina, while the businesses employ in the region of 250 people.
“We are very excited to add New York Style and Old London to the B&G Foods family,” said B&G president and CEO David L. Wenner. “The addition of these brands marks our entry into the fast growing snack category. Consistent with our prior acquisitions, we expect this acquisition to be immediately accretive to our earnings per share and free cash flow.”
New York Style produces the Bagel Crisps brand as well as Pita Chips and Panetini Italian Toast, while Old London specialises in Melba Toasts and similar products.
The deal is expected to be completed during the fourth quarter of 2012.
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