US company B&G Foods will acquire four food brands from Unilever in a deal worth US$325m deal.
B&G will buy Mrs Dash salt-free seasonings, butter sprinkles brand Molly McButter, calorie-free sugar substitute Sugar Twin and Baker’s Joy, a baking spray with flour, as well as household goods Static Guard and Kleen Guard.
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David Wenner, president and CEO of B&G Foods, said the growing trend towards healthier eating in the US makes the ‘free-from’ brands an attractive acquisition.
“We are very pleased to add these six brands to the B&G Foods portfolio. Mrs Dash seasonings have a unique position within the seasonings category and are very relevant to today’s health-conscious consumer”, he said on Friday (31 October).
“The other brands in the transaction are also consistent with B&G Foods’ acquisition strategy of acquiring smaller, high-margin brands. We expect the acquisition to enhance the already high margin structure of B&G Foods and to be immediately accretive to our earnings per share and free cash flow.”
Mrs Dash and the five other brands generated approximately $90m of sales in the twelve months ended September 30 and will generate EBITDA of $35m to $38m during fiscal 2012, according to the company.
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By GlobalDataB&G Foods expects the acquisition of the six brands and the related financing to close in 2011, subject to regulatory approval.
Last week, B&G upped its target for annual EBITDA after seeing sales and earnings increase in the third quarter of 2011.
