B&G Foods Inc. announced on March 19 that it has completed the acquisition of 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.
Those brands are added to B&G’s portfolio that includes well-known names such as Cream of Wheat, Crisco, Green Giant and Ortega.
B&G Foods Inc. said Jan. 15 that it agreed to buy 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.
The company 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 eight to 12 cents.
Because the acquisition was structured as an asset purchase, B&G Foods expects to realize approximately $15 million 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 (or 4.8 times annualized projected adjusted EBITDA net of expected tax benefits).
B&G Foods funded 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.
