Research Desk Line-up: Treehouse Foods Post Earnings Coverage
LONDON, UK / ACCESSWIRE / August 23, 2017 /Pro-Trader Daily takes a look at the latest corporate events and news making the headlines for B&G Foods, Inc. (NYSE: BGS), following which we have published a free report that can be viewed by signing up at http://protraderdaily.com/optin/?symbol=BGS. The Company announced on August 20, 2017, that it has struck an agreement to acquire Back to Nature Foods Co., LLC from Brynwood Partners VI L.P., Mondelēz International, and certain other entities and individuals for approximately $162.5 million in cash. For immediate access to our complimentary reports, including today's coverage, register for free now at:
Discover more of our free reports coverage from other companies within the Processed & Packaged Goods industry. Pro-TD has currently selected Treehouse Foods, Inc. (NYSE: THS) for due-diligence and potential coverage as the Company reported on August 03, 2017, its financial results for Q2 2017. Tune in to our site to register for a free membership, and be among the early birds that get our report on Treehouse Foods when we publish it.
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Brynwood VI and Mondelez Global LLC formed the Back to Nature joint venture in 2012 through an innovative structure, whereby Brynwood VI acquired operating control while Mondelez Global LLC retained a minority position in the new company, through its subsidiary Mondelez Global.
Transaction Expected to Close in Q3 2017
The transaction is subject to customary closing conditions, regulatory approvals from concerned organizations, and post-closing working capital adjustments, and is expected to close in Q3 2017.
Insights of the Deal
The acquisition is likely to be immediately accretive to its earnings per share and free cash flow and projects that following the completion of a six-month integration period, the acquired business will generate net sales of around $80 million on an annualized basis, and adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) of approximately $17 million. The acquisition represents a purchase price multiple of approximately 9.6 times adjusted EBITDA, or 8.4 times adjusted EBITDA net of the present value of expected tax benefits.
B&G Foods expects to fund the acquisition and related fees and expenses with additional revolving loans under its existing credit facility.
B&G Foods Continuing to Diversify its Portfolio of Brands
Commenting on the agreement, Robert C. Cantwell, President and Chief Executive Officer of B&G Foods, expressed that the Company is very pleased to add Back to Nature® to the B&G Foods family of brands. Consistent with B&G Foods' acquisition strategy and recent Green Giant®, spices & seasonings, and Victoria® acquisitions, the Company is continuing to diversify its portfolio of brands and invest in brands and products that are believed to be most relevant to today's consumer.
B&G Foods' Acquisitions in 2016
News reports suggest that on November 22, 2016, the Company acquired the spices and seasonings business of ACH Food Cos., Inc. for $365 million in cash, to bolster its presence in the shelf-stable product market.
On December 03, 2016, B&G Foods acquired Victoria Fine Foods Holding Co. and Victoria Fine Foods, LLC from Huron Capital Partners and other sellers for around $70 million in cash. The Victoria brand complemented well B&G Foods' existing portfolio of brands including Don Pepino pizza sauces, Sclafani crushed tomatoes, and Emeril's pasta sauces.
About B&G Foods, Inc.
B&G Foods and its subsidiaries manufacture, sell, and distribute a diversified portfolio of high-quality, branded shelf-stable foods and household products across the United States, Canada, and Puerto Rico. Its products include hot cereals, jams, jellies and fruit spreads, canned meats and beans, spices, seasonings, marinades, hot sauces, wine vinegar, maple syrup, molasses, salad dressings, Mexican-style sauces, taco shells and kits, salsas, pickles & peppers, and other specialty food products, marketed under many recognized brands, including Ac'cent, B&G, B&M, Baker's Joy, Bear Creek Country Kitchens, Brer Rabbit, Canoleo, Cary's, Cream of Rice, Cream of Wheat, Devonsheer, Don Pepino, Durkee, Emeril's, Joan of Arc, Las Palmas, Le Sueur, MacDonald's, to name a few.
Last Close Stock Review
At the close of trading session on Tuesday, August 22, 2017, B&G Foods' stock price rose 1.59% to end the day at $31.95. A total volume of 660.58 thousand shares were exchanged during the session. The Company's shares are trading at a PE ratio of 20.98 and have a dividend yield of 5.82%. At Tuesday's closing price, the stock's net capitalization stands at $2.14 billion.
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