PARSIPPANY, N.J.--(BUSINESS WIRE)--Sep. 12, 2018--
B&G Foods, Inc. (NYSE:BGS) announced today that it has entered into an
agreement to sell the Pirate Brands business, including the Pirate’s Booty,
Smart Puffs and Original Tings brands, to The
Hershey Company for approximately $420.0 million in cash, subject to
customary closing and post-closing adjustments.
“Pirate Brands is a terrific business that has performed very well for
us and we believe it will continue to thrive under the ownership of The
Hershey Company,” stated Robert C. Cantwell, President and Chief
Executive Officer of B&G Foods. “The transaction we are announcing today
is a great example of our ability to create meaningful shareholder value
through accretive M&A by acquiring and investing in on-trend food
brands. We acquired Pirate Brands in 2013 for approximately $195 million
and thanks to the passion, creativity and hard work of our dedicated
team of employees, we have more than doubled the value of the business
in five short years, creating tremendous value for our shareholders.”
Mr. Cantwell continued, “One of my biggest goals as CEO has been to
ensure that B&G Foods remains ready and able to continue our acquisition
strategy. By selling Pirate Brands at a very attractive multiple and
using the net proceeds to reduce long-term debt, we will significantly
reduce our leverage, which positions us very well for future
acquisitions.”
B&G Foods intends to use the net proceeds from the sale for the
repayment of long-term debt and possible acquisitions. B&G Foods expects
the sale to close in the fourth quarter of 2018, subject to regulatory
approval and the satisfaction of customary closing conditions.
About B&G Foods, Inc.
Based in Parsippany, New Jersey, B&G Foods and its subsidiaries
manufacture, sell and distribute high-quality, branded shelf-stable and
frozen foods across the United States, Canada and Puerto Rico. With B&G
Foods’ diverse portfolio of more than 50 brands you know and love,
including Back to Nature, B&G, B&M, Cream of Wheat,
Green Giant, Las Palmas, Le Sueur, Mama Mary’s,
Maple Grove Farms, Mrs. Dash, New York Style,
Ortega, Pirate’s Booty, Polaner, SnackWell’s,
Spice Islands, and Victoria, there’s a little
something for everyone. For more information about B&G Foods and its
brands, please visit www.bgfoods.com.
Forward-Looking Statements
Statements in this press release that are not statements of
historical or current fact constitute “forward-looking statements.” Such
forward-looking statements involve known and unknown risks,
uncertainties and other unknown factors that could cause the actual
results of B&G Foods to be materially different from the historical
results or from any future results expressed or implied by such
forward-looking statements. In addition to statements that explicitly
describe such risks and uncertainties readers are urged to consider
statements labeled with the terms “believes,” “belief,” “expects,”
“projects,” “intends,” “anticipates” or “plans” to be uncertain and
forward-looking. Factors that may affect actual results include, without
limitation, statements related to the planned sale of Pirate Brands,
including the receipt of regulatory approval and the satisfaction of
other closing conditions, and the timing thereof and statements related
to deleveraging and our ability to continue our acquisition strategy.
The forward-looking statements contained herein are also subject
generally to other risks and uncertainties that are described from time
to time in B&G Foods’ filings with the Securities and Exchange
Commission, including under Item 1A, “Risk Factors” in the Company’s
Annual Report on Form 10-K for fiscal 2017 filed on March 1, 2018 and in
its subsequent reports on Forms 10-Q and 8-K. Investors are
cautioned not to place undue reliance on any such forward-looking
statements, which speak only as of the date they are made. B&G Foods
undertakes no obligation to publicly update or revise any
forward-looking statement, whether as a result of new information,
future events or otherwise.
View source version on businesswire.com: https://www.businesswire.com/news/home/20180912006128/en/
Source: B&G Foods, Inc.
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