2026-03-20 14:50:52
B&G Foods Completes Acquisition of College Inn and Kitchen Basics Brands for $110 Million
Expected Stock impact: Very Positive
B&G Foods, Inc. (NYSE: BGS) announced the successful completion of its acquisition of the broth and stock business from Del Monte Foods Corporation II Inc., which includes the well-known College Inn and Kitchen Basics brands. The acquisition, finalized on March 19, 2026, was executed through B&G Foods' wholly owned subsidiary, B&G Foods North America, Inc., for a purchase price of approximately $110 million in cash. This strategic move is expected to enhance B&G Foods' portfolio and is projected to be immediately accretive to its earnings per share, adjusted EBITDA, and free cash flow. The College Inn and Kitchen Basics brands are anticipated to generate annual net sales between $110 million and $120 million, with adjusted EBITDA ranging from $18 million to $22 million. Furthermore, the acquisition is expected to yield approximately $15 million in tax benefits on a net present value basis. The terms of the asset purchase agreement were determined through a competitive auction process during Del Monte Foods' Chapter 11 bankruptcy proceedings, ensuring a fair valuation. B&G Foods funded the acquisition using cash on hand, including proceeds from previous divestitures, and additional revolving loans under its existing credit facility. This acquisition aligns with B&G Foods' strategy to expand its product offerings and strengthen its market position in the food industry.
