B&G Foods Completes Acquisition of Iconic Green Giant® Brand
November 02 2015 - 4:05PM
Business Wire
B&G Foods, Inc. (NYSE:BGS) announced that effective
today it has completed the acquisition of the iconic Green Giant®
and Le Sueur® brands, leaders in frozen and canned vegetables, from
General Mills, Inc. for the previously announced price of $765
million in cash plus an inventory adjustment at closing of
approximately $58 million.
B&G Foods projects that the Green Giant and Le Sueur
brands will generate on an annualized basis net sales of
approximately $550 million, adjusted EBITDA of approximately $95
million to $100 million and earnings per share of approximately
$0.60. Because the acquisition was structured as an asset purchase,
B&G Foods expects to realize approximately $137 million in tax
benefits on a net present value basis.
The Green Giant and Le Sueur brands trace their roots to Le
Sueur, Minnesota in 1903, and the Minnesota Valley Canning
Company. For more than 100 years, fresh and great-tasting
Green Giant and Le Sueur vegetables have been grown and
picked at the peak of perfection® in the Valley of the Jolly
Green Giant.
B&G Foods funded the purchase price, the inventory
adjustment at closing, initial working capital requirements and
related fees and expenses with additional revolving loans and $750
million of new incremental term loans under its existing credit
facility.
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 across the United States, Canada and Puerto
Rico. Based in Parsippany, New Jersey, B&G Foods’
products are 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, Emeril’s,
Grandma’s Molasses, JJ Flats, Joan of Arc,
Las Palmas, MacDonald’s, Mama Mary’s, Maple Grove Farms,
Molly McButter, Mrs. Dash, New York Flatbreads, New York
Style, Old London, Original Tings, Ortega, Pirate’s Booty,
Polaner, Red Devil, Regina, Rickland Orchards, Sa-són, Sclafani,
Smart Puffs, Spring Tree, Sugar Twin, Trappey’s, TrueNorth,
Underwood, Vermont Maid, Wright’s and now, Green Giant and Le
Sueur. B&G Foods also sells and distributes Static Guard, a
household product brand.
Forward-Looking Statements
Statements in this press release that are not statements of
historical or current fact constitute “forward-looking statements.”
The forward-looking statements contained in this press release
include, without limitation, statements related to the expected
impact of the acquisition of the Green Giant and Le Sueur brands,
including without limitation, the expected impact on
B&G Foods’ earnings per share, net sales, adjusted EBITDA
and free cash flow, and the expected tax benefits of the
acquisition. Such forward-looking statements involve known and
unknown risks, uncertainties and other unknown factors that could
cause the actual results of B&G Foods to be materially
different from the historical results or from any future results
expressed or implied by such forward-looking statements. In
addition to statements that explicitly describe such risks and
uncertainties readers are urged to consider statements labeled with
the terms “believes,” “belief,” “expects,” “projects,” “intends,”
“anticipates” or “plans” to be uncertain and forward-looking.
Factors that may affect actual results include, without limitation:
whether and when the required regulatory approvals will be
obtained, whether and when the other closing conditions will be
satisfied and whether and when the transaction and related
financing will close, whether and when the Company will be able to
realize the expected financial results and accretive effect of the
transaction, and how customers, competitors, suppliers and
employees will react to the acquisition. The forward-looking
statements contained herein are also subject generally to other
risks and uncertainties that are described from time to time in
B&G Foods’ filings with the Securities and Exchange
Commission, including under Item 1A, “Risk Factors” in the
Company’s Annual Report on Form 10-K for fiscal 2014 filed on
March 4, 2015 and in its subsequent reports on Forms 10-Q and 8-K.
Investors are cautioned not to place undue reliance on any such
forward-looking statements, which speak only as of the date they
are made. B&G Foods undertakes no obligation to publicly
update or revise any forward-looking statement, whether as a result
of new information, future events or otherwise.
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ICR, Inc.Investor Relations:Dara Dierks, 866-211-8151orMedia
Relations:Matt Lindberg, 203-682-8214
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