On August 20, 2017, B&G Foods Inc. (NYSE: BGS) announced that it had entered into a definitive agreement to acquire Back to Nature Foods Company from Brynwood Partners VI L.P., Mondelez International and other entities and individuals. The transaction will involve roughly $162.5 million in cash. B&G Foods expects the acquisition to close sometime during the third quarter of 2017.
President and Chief Executive Officer of B&G Foods, Robert C. Cantwell, made a statement about the acquisition. “We are very pleased to add Back to Nature to the B&G Foods family of brands. Consistent with our acquisition strategy and our recent Green Giant, spices & seasonings and Victoria acquisitions, we are continuing to diversify our portfolio of brands and invest in brands and products that we believe are most relevant to today’s consumer.”
B&G Foods expects the acquired business to generate annualized basis net sales of approximately $80 million and adjusted EBITDA of roughly $17 million. Back to Nature Foods had been a pioneer and offers a variety of product offerings, including Non-GMO Project Verified, organic and gluten-free products. The company also offers the SnackWell’s brand of no-fat and low-fat snacks.
B&G Foods intends to fund the acquisition with revolving loans under its existing credit facility.