B&G Food acquires ACH Food's spice business
Nov. 22, 2016
by MEAT+POULTRY Staff
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ACH Food makes spices and seasonings under such brands as Spice Islands, Durkee and Tone's.
PARSIPPANY, N.J. – B&G Foods Inc. has completed its acquisition of ACH Food Companies Inc’s spices and seasonings business for $365 million in cash. The deal is subject to an adjustment based upon inventory at closing. B&G Foods and its subsidiaries manufacture, sell and distribute shelf-stable and frozen foods across the US, Canada and Puerto Rico. ACH Food supplies spices and seasonings to retail and foodservice customers.
According to a release from B&G Foods, the company projects that after the deal, the new business will generate net sales in the range of $220 million to $225 million, adjusted EBITDA in the range of $38.0 million to $40.0 million and adjusted diluted earnings per share in the range of $0.26 to $0.28. B&G Foods expects to receive approximately $83 million in tax benefits on a net present value basis since the acquisition was structured as an asset purchase.
As a part of the acquisition, B&G Foods acquired a manufacturing facility in Ankeny, Iowa. The ACH spices and seasonings business includes the Spice Islands, Tone’s and Durkee brands, as well as Weber brand sauces and seasonings, which are sold under license.
The acquisition, fees and expenses were funded by B&G Foods’ cash on hand, which included net proceeds from its public offering of common stock in August.