B&G Foods to Buy ACH Food's Spice Business for $365 Million
September 21 2016 - 4:37PM
Dow Jones News
By Tess Stynes
Grocery conglomerate B&G Foods Inc. (BGS) agreed to acquire
the spices and seasonings business of ACH Food Companies Inc. for
roughly $365 million, expanding its position in the category.
With the deal, B&G adds the Spice Islands, Tone and Durkee
spice brands as well as Weber sauces and seasonings, which are sold
under license. B&G also gains a factory in Arkeny, Iowa.
ACH Food, the North American unit of Associated British Foods
PLC (ASBFY, ABF.LN), markets and manufactures cooking and baking
ingredients such as Mazola corn oil.
New Jersey-based B&G, whose brands include its namesake
pickles, has grown through acquisitions, including its $765 million
purchase of the Green Giant and Le Sueur brands from General Mills
last year.
B&G expects the deal with ACH Foods, scheduled to close in
the fourth quarter, will immediately add to its per-share earnings
and cash flow.
The company estimates that starting next year, the acquired
businesses will generate annual per-share adjusted earnings of 26
cents to 28 cents and revenue of $220 million to $225 million.
Write to Tess Stynes at tess.stynes@wsj.com
(END) Dow Jones Newswires
September 21, 2016 16:22 ET (20:22 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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