B&G Foods Inc. said Jan. 15 that it agreed to purchase the broth and stock business of Del Monte Foods Corporation II Inc. and its affiliates, including the College Inn and Kitchen Basics brands, for about $110 million in cash and assumption of certain liabilities.
B&G Foods, whose portfolio includes such well-known brands as Cream of Wheat, Crisco, Dash and Green Giant, 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 College Inn and Kitchen Basics brands are regarded as complements to B&G Foods’ stable of brands.
The closing of the acquisition is subject to bankruptcy court approval, the satisfaction of other customary closing conditions, and the closing of two other bankruptcy sales unrelated to B&G Foods or the broth and stock business by Del Monte Foods Corporation II Inc. and its affiliates. If approved by the bankruptcy court, the acquisition is expected to close during the first quarter of 2026.
“We are very excited to be the winning bidder for Del Monte’s broth and stock business and to add the College Inn and Kitchen Basics brands to the B&G Foods portfolio,” said Casey Keller, president and CEO of B&G Foods.
“The College Inn and Kitchen Basics brands complement our existing portfolio of brands. College Inn and Kitchen Basics are pantry staples for consumers seeking to prepare high-quality, innovative and versatile meals at home. 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.”
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 about $110 million to $120 million, adjusted EBITDA in the range of $18 million to $22 million and adjusted diluted earnings per share in the range of 8 to 12 cents.
Because the acquisition will be structured as an asset purchase, B&G Foods expects to realize approximately $15 million in tax benefits on a net present value basis.
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.
Last year, B&G Foods Inc. sold the Le Sueur brand of premium sweet peas, green beans and carrots to McCall Farms Inc. as it extended its plan to divest itself of products with low margins and cash flow.
Del Monte Foods, founded in 1886, filed for Chapter 11 bankruptcy protection in July 2025.
