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B&G Foods to buy Back to Nature Foods

FBR Staff Writer Published 22 August 2017

Shelf-stable and frozen foods manufacturer B&G Foods has agreed to acquire Back to Nature Foods for about $162.5m.

Back to Nature Foods is a portfolio company of Brynwood Partners VI, Mondelez and certain other entities. Brynwood VI and Mondelez Global have formed the Back to Nature joint venture in 2012.

Later, in 2013, Brynwood VI has acquired operating control on SnackWell's cookies and snacks business while Mondelez retained a minority position in the new company.

Back to Nature products represent a range of categories, including cookies, crackers, nuts and trail mixes, granola, juices, soups, and cereals.

The company’s products include Non-GMO Project Verified, organic and gluten free products. It also offers the SnackWell’s brand of low-fat and no-fat snacks.

New-Jersey based B&G Foods said that after the completion of a six-month integration period, the firm is anticipating the acquisition to be accretive with an immediate effect to its earnings per share and free cash flow and projects

The transaction will generate an annualized basis net sales of approximately $80 m and adjusted EBITDA of approximately $17 million.

Depending upon the previous adjusted EBITDA guidance, the transaction 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 president Robert Cantwell said: “Consistent with our acquisition strategy and our recent Green Giant, spices & seasonings and Victoria  acquisitions, we are continuing to diversify our portfolio of brands and invest in brands and products that we believe are most relevant to today’s consumer.”

Image:B&G signs agreement with Back to Nature Food company. Photo: courtesy of adamr at FreeDigitalPhotos.net