The all-cash deal will also see B&G acquire a Cincinnati warehouse and manufacturing facility. B&G said it expects the transaction to close in the fourth quarter, pending customary approvals and conditions. The purchase price is subject to a post-closing inventory adjustment, it noted.
“We are very excited to add the iconic Crisco brand to the B&G Foods portfolio,” B&G CEO and President Kenneth Romanzi said in a prepared statement. “Crisco is an excellent complement to our existing portfolio of brands, including our Clabber Girl and other baking powder brands. This acquisition is consistent with our longstanding acquisition strategy of targeting well-established brands with defensible market positions and strong cash flow at reasonable purchase price multiples.”
B&G projects that the business will benefit from increased demand due to the COVID-19 pandemic in 2021, generating annual net sales of approximately $270 million and adjusted earnings of $65 million to $70 million.
The company intends to fund the acquisition with cash on hand and revolving loans under an existing credit facility, it said.