B&G Foods chief executive David Wenner has called the US company’s acquisition of four food brands from Unilever a “game changer” that will take their operation to “another level”.
On Friday (28 October), B&G Foods announced it would acquire 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, in a US$325m deal.
The company will also, for the first time, enter the household goods market with new products Static Guard and Kleen Guard, also acquired from Unilever as part of the deal.
In a conference call to analysts today (1 November), David Wenner, president and CEO of B&G Foods, said he was “delighted” with the acquisitions and said the products will dovetail well with the company’s existing portfolio.
“This is a very meaningful and very accretive acquisition for B&G similar to ones we’ve done in the past like Cream of Wheat (instant hot cereal) and Ortega (a taco mix brand),” said Wenner.
“It’s a game changer in terms of taking the business to another level and we hope to bring the same level of success as we have with acquisitions in the past and we certainly believe it’s a good move for shareholders.”
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By GlobalDataHe added: “These brands are the niche brands that B&G Foods has managed so well over the years. Mrs Dash and Molly McButter sell in the highly competitive seasonings category but each brand has established a strong presence.
“Mrs Dash in particular is well known for its healthy salt-free profile, a position important in these days of health-conscious consumers.”
B&G Foods expects the acquisition of the six brands, which generated approximately $90m of sales in the twelve months ended September 30, to close by the end of the year, subject to regulatory approval.