B&G Foods to Sell Pirate’s Booty to The Hershey Company for $420.0 Million
September 12 2018 - 06:36PM
Business Wire
B&G Foods, Inc. (NYSE:BGS) announced today that it has
entered into an agreement to sell the Pirate Brands business,
including the Pirate’s Booty, Smart Puffs and
Original Tings brands, to The Hershey Company for
approximately $420.0 million in cash, subject to customary closing
and post-closing adjustments.
“Pirate Brands is a terrific business that has performed very
well for us and we believe it will continue to thrive under the
ownership of The Hershey Company,” stated Robert C. Cantwell,
President and Chief Executive Officer of B&G Foods. “The
transaction we are announcing today is a great example of our
ability to create meaningful shareholder value through accretive
M&A by acquiring and investing in on-trend food brands. We
acquired Pirate Brands in 2013 for approximately $195 million and
thanks to the passion, creativity and hard work of our dedicated
team of employees, we have more than doubled the value of the
business in five short years, creating tremendous value for our
shareholders.”
Mr. Cantwell continued, “One of my biggest goals as CEO has been
to ensure that B&G Foods remains ready and able to continue our
acquisition strategy. By selling Pirate Brands at a very attractive
multiple and using the net proceeds to reduce long-term debt, we
will significantly reduce our leverage, which positions us very
well for future acquisitions.”
B&G Foods intends to use the net proceeds from the sale
for the repayment of long-term debt and possible acquisitions.
B&G Foods expects the sale to close in the fourth quarter of
2018, subject to regulatory approval and the satisfaction of
customary closing conditions.
About B&G Foods, Inc.
Based in Parsippany, New Jersey, B&G Foods and its
subsidiaries manufacture, sell and distribute high-quality, branded
shelf-stable and frozen foods across the United States, Canada and
Puerto Rico. With B&G Foods’ diverse portfolio of more than 50
brands you know and love, including Back to Nature, B&G,
B&M, Cream of Wheat, Green Giant, Las Palmas,
Le Sueur, Mama Mary’s, Maple Grove Farms,
Mrs. Dash, New York Style, Ortega, Pirate’s Booty,
Polaner, SnackWell’s, Spice Islands, and Victoria, there’s a
little something for everyone. For more information about B&G
Foods and its brands, please visit www.bgfoods.com.
Forward-Looking Statements
Statements in this press release that are not statements of
historical or current fact constitute “forward-looking statements.”
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, statements related to the
planned sale of Pirate Brands, including the receipt of regulatory
approval and the satisfaction of other closing conditions, and the
timing thereof and statements related to deleveraging and our
ability to continue our acquisition strategy. 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 2017 filed on
March 1, 2018 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
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