Packaged food company,
B&G Foods, Inc.
) recently announced the pricing of senior notes worth $700
million due 2021. The notes carry an interest rate of 4.625%. The
offering process is expected to complete on Jun 4, 2013.
B&G intends to use the net proceeds to purchase senior
notes worth $248.5 million due 2018. The company may also redeem
other existing senior notes worth $222.2 million and revolving
loans of $40.0 million. The remaining net proceeds would be used
to meet other general corporate expenses, which may include
repayment of debt and acquisition of assets.
B&G Foods often acquires small brands that have strong
margins and generate less than $100 million in sales. Most of the
time, these are smaller brands from large food companies, which
have limited competition. B&G Foods' investments in these
brands help to generate huge free cash flow and ensure
profitability in the long run.
Very recently, B&G acquired the TrueNorth brand from
DeMet's Candy Company to strengthen its snack portfolio.
TrueNorth are bite sized nut clusters made of roasted nuts, with
a taste of sea salt and sweetness. B&G Foods' snacks
portfolio also includes New York Style, Old London, JJ Flats and
Devonsheer brands which were acquired in Oct 2013.
B&G Foods carries a Zacks Rank #2 (Buy).
Some other consumer staple stocks that are worth a look
Flower Foods Inc.
) carrying a Zacks Rank #1 (Strong Buy) and
H. J. Heinz Company
J&J Snack Foods Corp.
) holding a Zacks Rank #2 (Buy).
B&G FOODS CL-A (BGS): Free Stock Analysis
FLOWERS FOODS (FLO): Free Stock Analysis
HEINZ (HJ) CO (HNZ): Free Stock Analysis
J&J SNACK FOODS (JJSF): Free Stock Analysis
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