B&G Foods Signed a Deal to Acquire Specialty Brands From American Individuals

B&G Foods, a US-based manufacturer of branded shelf-stable foods, has signed a deal to acquire Specialty Brands of America from American Capital and certain individuals for $155m in cash.

Specialty Brands of America is a packaged food maker under brands, including Bear Creek, Spring Tree, Cary's and MacDonald's, New York Flatbreads and Canoleo. Its portfolio includes dry soups, savory pasta dishes, rice dishes, maple syrups and pancake syrups.

B&G Foods plans to finance the transaction through cash on hand and borrowings under its existing revolving credit facility.

Subject to regulatory approval and customary closing conditions, the acquisition is expected to close during the second or third quarter of 2014.

The company expects Specialty Brands to generate net sales of around $85m and adjusted EBITDA of about $20m.

B&G Foods president and CEO David L Wenner said, "Under the leadership of American Capital and Dom Bastien, the founder and Chief Executive Officer of Specialty Brands, the company has built a solid and profitable business that continues to grow."

"We look forward to welcoming Specialty Brands into our family of brands. These brands complement very well our existing portfolio of brands and we believe that B&G Foods will be able to enhance the growth prospects of these brands," added Wenner.

Evercore Group acted as advisor to American Capital on the transaction.