B&G Foods acquires ACH Food Companies’ spice business

US-based B&G Foods has completed the acquisition of the spices and seasonings business of ACH Food Companies for $365m, subject to a customary adjustment based upon inventory at closing.

The new acquisition is expected to be immediately accretive to B&G Foods’ earnings a share and free cash flow.

As part of the deal, B&G Foods projects will be completely integrated with the newly acquired company and is expected to generate net sales ranging between $220m and $225m, adjusted EBITDA in the range of $38m to $40m.

B&G Foods expects to realise nearly $83m in tax benefits on a net present value basis, as the acquisition was structured as an asset purchase.

The ACH brands include Spice Islands, Tone’s and Durkee brands, and it also offers Weber brand sauces and seasonings, which are sold under license.

As part of the acquisition, B&G Foods has also acquired ACH’s spice manufacturing facility in Ankeny, Iowa.

B&G Foods and its subsidiaries produce and distribute a a wide range of shelf-stable and frozen foods across the US, Canada and Puerto Rico. Its products are marketed under a number of well-known brands.