B&G Foods has agreed to acquire US-based snack food manufacturer Robert's American Gourmet Food from private equity firm VMG Partners and other parties in an all-cash deal of $195m.
The acquisition is part of B&G Foods' strategy to strengthen its snack business.
Robert's American Gourmet Food, which is also known as Pirate Brands, is a manufacturer of all natural snacks under the Pirate's Booty, Smart Puffs and Original Tings brands. The company's product portfolio includes Aged White Cheddar, Veggie Booty, Smart Puffs, Tings, Potato flyers, power puffs, grateful puffs and veggie chips among others.
B&G Foods plans to fund the acquisition with the remaining net proceeds of its recently completed senior notes offering and additional revolving credit borrowings under its credit agreement.
The deal is subject to regulatory approval and customary closing conditions and is expected to be completed in July.
B&G Foods president and chief executive officer David L. Wenner said that the acquisition of Robert's American Gourmet Food marks the second addition to the company's snack foods portfolio since it entered the category in October 2012.
"Consistent with our acquisition strategy, we expect the acquisition to be immediately accretive to our earnings per share and free cash flow," Wenner added.
Following the acquisition, Pirate Brands is expected to generate revenues of $80m to $90m and adjusted EBITDA of $18m to $20m per annum after the business is fully integrated into B&G Foods.
B&G Foods and its subsidiaries manufacture, sell and distribute a wide range of branded shelf-stable foods across the US, Canada and Puerto Rico. The company's products are marketed under brands including Ac'cent, B&G, B&M, Baker's Joy, Brer Rabbit, Cream of Rice, Cream of Wheat, Devonsheer, Don Pepino, Emeril's and Grandma's Molasses among others.
