New Jersey-based food group B&G Foods has completed its US$200m cash acquisition of Kraft’s Cream of Wheat and Cream of Rice brands.
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The purchase price remains subject to a post-closing adjustment for inventory at the closing date of 25 February.
B&G Foods said it has used the proceeds of an additional $205m of term loan borrowings under its newly amended and restated credit facility to fund the acquisition and pay related transaction fees and expenses.
“This is a very exciting acquisition for B&G Foods. We have acquired the number two brand in the hot cereal category, a brand with great name recognition and over 100 years of heritage,” said B&G CEO David L. Wenner. “Cream of Wheat and Cream of Rice fit B&G Foods’ acquisition strategy perfectly, and are brands that our company can nurture and hopefully grow through focus and innovation.”
The Cream of Wheat and Cream of Rice brands generated net sales of approximately $60m in 2006.
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