Back to Newsroom
Back to Newsroom

Corporate News Blog - B&G Foods to Add Back to Nature Foods Co. to its Foods Family of Brands

Wednesday, 23 August 2017 07:50 AM

Pro-Trader Daily

Topic:

Research Desk Line-up: Treehouse Foods Post Earnings Coverage

LONDON, UK / ACCESSWIRE / August 23, 2017 / Pro-Trader Daily takes a look at the latest corporate events and news making the headlines for B&G Foods, Inc. (NYSE: BGS), following which we have published a free report that can be viewed by signing up at http://protraderdaily.com/optin/?symbol=BGS. The Company announced on August 20, 2017, that it has struck an agreement to acquire Back to Nature Foods Co., LLC from Brynwood Partners VI L.P., Mondelēz International, and certain other entities and individuals for approximately $162.5 million in cash. For immediate access to our complimentary reports, including today's coverage, register for free now at:

http://protraderdaily.com/register/

Discover more of our free reports coverage from other companies within the Processed & Packaged Goods industry. Pro-TD has currently selected Treehouse Foods, Inc. (NYSE: THS) for due-diligence and potential coverage as the Company reported on August 03, 2017, its financial results for Q2 2017. Tune in to our site to register for a free membership, and be among the early birds that get our report on Treehouse Foods when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on BGS; also brushing on THS. Go directly to your stock of interest and access today's free coverage at:

http://protraderdaily.com/optin/?symbol=BGS

http://protraderdaily.com/optin/?symbol=THS

Brynwood VI and Mondelez Global LLC formed the Back to Nature joint venture in 2012 through an innovative structure, whereby Brynwood VI acquired operating control while Mondelez Global LLC retained a minority position in the new company, through its subsidiary Mondelez Global.

Transaction Expected to Close in Q3 2017

The transaction is subject to customary closing conditions, regulatory approvals from concerned organizations, and post-closing working capital adjustments, and is expected to close in Q3 2017.

Insights of the Deal

The acquisition is likely to be immediately accretive to its earnings per share and free cash flow and projects that following the completion of a six-month integration period, the acquired business will generate net sales of around $80 million on an annualized basis, and adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) of approximately $17 million. The acquisition represents a purchase price multiple of approximately 9.6 times adjusted EBITDA, or 8.4 times adjusted EBITDA net of the present value of expected tax benefits.

B&G Foods expects to fund the acquisition and related fees and expenses with additional revolving loans under its existing credit facility.

B&G Foods Continuing to Diversify its Portfolio of Brands

Commenting on the agreement, Robert C. Cantwell, President and Chief Executive Officer of B&G Foods, expressed that the Company is very pleased to add Back to Nature® to the B&G Foods family of brands. Consistent with B&G Foods' acquisition strategy and recent Green Giant®, spices & seasonings, and Victoria® acquisitions, the Company is continuing to diversify its portfolio of brands and invest in brands and products that are believed to be most relevant to today's consumer.

B&G Foods' Acquisitions in 2016

News reports suggest that on November 22, 2016, the Company acquired the spices and seasonings business of ACH Food Cos., Inc. for $365 million in cash, to bolster its presence in the shelf-stable product market.

On December 03, 2016, B&G Foods acquired Victoria Fine Foods Holding Co. and Victoria Fine Foods, LLC from Huron Capital Partners and other sellers for around $70 million in cash. The Victoria brand complemented well B&G Foods' existing portfolio of brands including Don Pepino pizza sauces, Sclafani crushed tomatoes, and Emeril's pasta sauces.

About B&G Foods, Inc.

B&G Foods and its subsidiaries manufacture, sell, and distribute a diversified portfolio of high-quality, branded shelf-stable foods and household products across the United States, Canada, and Puerto Rico. Its products include hot cereals, jams, jellies and fruit spreads, canned meats and beans, spices, seasonings, marinades, hot sauces, wine vinegar, maple syrup, molasses, salad dressings, Mexican-style sauces, taco shells and kits, salsas, pickles & peppers, and other specialty food products, marketed under many recognized brands, including Ac'cent, B&G, B&M, Baker's Joy, Bear Creek Country Kitchens, Brer Rabbit, Canoleo, Cary's, Cream of Rice, Cream of Wheat, Devonsheer, Don Pepino, Durkee, Emeril's, Joan of Arc, Las Palmas, Le Sueur, MacDonald's, to name a few.

Last Close Stock Review

At the close of trading session on Tuesday, August 22, 2017, B&G Foods' stock price rose 1.59% to end the day at $31.95. A total volume of 660.58 thousand shares were exchanged during the session. The Company's shares are trading at a PE ratio of 20.98 and have a dividend yield of 5.82%. At Tuesday's closing price, the stock's net capitalization stands at $2.14 billion.

Pro-Trader Daily:

Pro-Trader Daily (Pro-TD) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and Canadian stocks. PRO-TD has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles, and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.

PRO-TD has not been compensated; directly or indirectly; for producing or publishing this document.

PRESS RELEASE PROCEDURES:

The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third party research service company (the "Reviewer") represented by a credentialed financial analyst [for further information on analyst credentials, please email [email protected]. Rohit Tuli, a CFA® charter holder (the "Sponsor"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by PRO-TD. PRO-TD is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.

NO WARRANTY

PRO-TD, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. PRO-TD, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, PRO-TD, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.

NOT AN OFFERING

This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither PRO-TD nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://protraderdaily.com/disclaimer/.

CONTACT

For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:

Email: [email protected]

Phone number: (917) 341.4653

Office Address: Mainzer Landstrasse 50 Frankfurt am Main, Germany 60325

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

SOURCE: Pro-Trader Daily

Topic:
Back to newsroom
Back to Newsroom
Share by: