B&G Foods completes acquisition of snack maker Rickland Orchards

US-based B&G Foods has completed the acquisition of snack maker Rickland Orchards from Natural Instincts in a $57.5m deal.

Launched in March 2012, Rickland Orchards offers products including Greek yoghurt coated granola bars and bites that blend a strained Greek yoghurt coating with roasted nuts, granola and fruit.

With annual net sales of more than $50m, the brand already has a strong presence across the club, retail, mass and convenience channels.

This acquisition is the fourth for B&G Foods since October 2012.

B&G Foods president and CEO David L Wenner said that the company is pleased to welcome Rickland Orchards, its founder and CEO Jason Cohen and its chief operating officer Michael Sands into the B&G Foods family.

"Combining the talents of Jason and Michael with B&G Foods’ existing strong management team and sales force will benefit both Rickland Orchards and B&G Foods’ base business," he added.

Rickland Orchards founder and CEO Jason Cohen said, "We believe that our experience in the club channel and in developing on trend, innovative products combined with B&G Foods’ seasoned management team, sales force and impressive portfolio of brands will result in continued growth for Rickland Orchards and incremental sales for B&G Foods’ existing brands."

As part of the transaction, Cohen is joining B&G Foods as executive vice president of the club channel and will be responsible for sales of B&G Foods’ portfolio of brands into the club channel.

In addition, Michael Sands is joining B&G Foods as vice president of product innovation.

B&G Foods paid $37.4m in cash from borrowings under its revolving credit facility and approximately $20.1m in shares of its common stock.

As per the terms, Natural Instincts will also receive earn-out payments if certain performance goals are achieved.

Houlihan Lokey Capital acted as the investment banking advisor to Natural Instincts.