B&G Foods Acquires Del Monte's Broth Business for Approximately $110M

B&G Foods announced that it has entered into an agreement to acquire the broth and stock business of Del Monte Foods Corporation and its affiliates, including the College Inn and Kitchen Basics brands, for approximately $110M in cash, subject to an inventory adjustment at closing, and assumption of certain liabilities. B&G Foods was the winning bidder for the broth and stock business following a competitive auction process that was conducted in connection with the Chapter 11 bankruptcy proceedings of Del Monte Foods Corporation II Inc. and certain of its affiliates. The closing of the acquisition is subject to Bankruptcy Court approval, the satisfaction of other customary closing conditions, and the simultaneous closing of two other bankruptcy sales unrelated to B&G Foods or the broth and stock business by Del Monte Foods Corporation and its affiliates. If approved by the Bankruptcy Court, the acquisition is expected to close during the first quarter of 2026. Upon closing, B&G Foods expects the acquisition to be immediately accretive to its earnings per share, adjusted EBITDA and free cash flow. B&G Foods projects that on an annualized basis, the College Inn and Kitchen Basics brands will generate net sales in the range of approximately $110M to $120M, adjusted EBITDA in the range of $18M to $22M and adjusted diluted earnings per share in the range of 8c to 12c. Because the acquisition will be structured as an asset purchase, B&G Foods expects to realize approximately $15M in tax benefits on a net present value basis. At the midpoint of B&G Foods' annualized projected adjusted EBITDA for the business, the acquisition represents a purchase price multiple of approximately 5.5 times adjusted EBITDA. B&G Foods intends to fund the acquisition and related fees and expenses with cash on hand, including cash from divestitures, and revolving loans under its existing credit facility.