B&G Foods to buy American packaged foods firm for $155m

US-based B&G Foods will buy Specialty Brands of America and its related assets from private investor American Capital in a $155m all-cash deal.

Specialty Brands offers packaged food products under various brands, including Bear Creek Country Kitchens.

Bear Creek produces dry soups in the US, in addition to savoury pasta dishes and rice dishes.

Specialty Brands also manufactures Spring Tree, Cary’s and MacDonald’s maple syrups and pancake syrups, New York Flatbreads and Canoleo margarine.

B&G Foods said that the Specialty Brands portfolio complements its existing brands, and believes it will be able to enhance the growth prospects of these brands.

The company plans to use cash on hand and borrowings under its existing revolving credit facility to fund the acquisition, which is expected to close during the second or third quarter of 2014.

The acquired entity will be immediately accretive to B&G Foods’ earnings per share and free cash flow.

After being fully integrated into B&G Foods, Specialty Brands is expected to report around $85m in net revenues with adjusted EBITDA of $20m on an annualised basis.

B&G Foods president and CEO David L Wenner said, "Under the leadership of American Capital and Dom Bastien, the founder and chief executive officer of Specialty Brands, the company has built a solid and profitable business that continues to grow.

"We look forward to welcoming Specialty Brands into our family of brands."

The acquisition is subject to the receipt of regulatory approval and certain customary closing conditions.

Evercore Group has provided advisory services to American Capital on the deal.

American Capital is a publicly traded private equity firm with $19bn in assets.