B&G Foods acquires two snack brands from Chipita America

US-based B&G Foods has completed its acquisition of the New York Style and Old London snack brands from Chipita America for $62.5m in cash.

On 19 September 2012, B&G Foods entered into an agreement to acquire the brands from Chipita America, as part of its plan to expand into the snack category.

The acquisition includes a manufacturing facility at Yadkinville, North Carolina, which employs about 250 people.

The New York Style brand offers products such as bagel crisps, mini bagel crisps, Pita chips and Panetini Italian toast, which have been developed to reflect the taste of New York City’s traditional bakeries.

The Old London brand offers Melba toasts and snacks, bagel chips, as well as speciality snacks under the Devonsheer and JJ Flats names.

B&G Foods expects the deal to be immediately accretive to earnings per share and free cash flow, and forecasts that the brands will generate an EBITDA of $8m to $9m and net sales of about $45m to $50m in 2013.

This deal marks B&G Foods’ second major acquisition in the past year – in November 2011, it acquired the Culver Specialty Brands division, which produces seasoning blends, sugar substitutes, flavoured sprinkles, and anti-static sprays, from Unilever in a $325m deal.

For the third quarter ended 29 September 2012, B&G Foods reported a 15.9% increase in net sales to $154.2m and a 39.8% surge in net income to $16.9m, helped by the acquisition of the Culver Specialty Brands division and higher pricing actions.

B&G Foods manufactures a range of shelf-stable foods across the US, Canada and Puerto Rico, while Chipita America, a subsidiary of Greece-based Chipita, produces bakery and confectionery products.