B&G Foods to Buy ACH Food''s Spice Business for $365 Million

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B&G Foods to Buy ACH Food's Spice Business for $365 Million


By Tess Stynes

Grocery conglomerate B&G Foods Inc. ( BGS ) agreed to acquire the spices and seasonings business of ACH Food Companies Inc. for roughly $365 million, expanding its position in the category.

With the deal, B&G adds the Spice Islands, Tone and Durkee spice brands as well as Weber sauces and seasonings, which are sold under license. B&G also gains a factory in Arkeny, Iowa.

New Jersey-based B&G, whose brands include its namesake pickles, has grown through acquisitions, including its $765 million purchase of the Green Giant and Le Sueur brands from General Mills last year.

B&G expects the deal with ACH Foods, scheduled to close in the fourth quarter, will immediately add to its per-share earnings and cash flow.

The company estimates that starting next year, the acquired businesses will generate annual per-share adjusted earnings of 26 cents to 28 cents and revenue of $220 million to $225 million.

Write to Tess Stynes at tess.stynes@wsj.com


  (END) Dow Jones Newswires
  09-21-161622ET
  Copyright (c) 2016 Dow Jones & Company, Inc.



This article appears in: News Headlines
Referenced Symbols: ASBFY , BGS


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