B&G Foods to buy Robert’s American Gourmet Food

B&G Foods has entered into an agreement to acquire US-based snack food manufacturer Robert’s American Gourmet Food from private equity firm VMG Partners, founder Robert Ehrlich and other parties in an all-cash deal of $195m.

The acquisition is part of B&G Foods’ strategy to strengthen its snack business.

Robert’s American Gourmet Food, which is also known as Pirate Brands, produces all natural snacks under brands including Pirate’s Booty, Smart Puffs and Original Tings.

B&G Foods plans to fund the acquisition with the remaining net proceeds of its recently completed senior notes offering and additional revolving credit borrowings under its credit agreement.

The deal, which is subject to regulatory approval and customary closing conditions, is expected to be completed in July this year.

B&G Foods president and chief executive officer David L. Wenner said that the acquisition of Pirate Brands is the second addition to the company’s snack foods portfolio since it entered the category in October 2012.

"We look forward to continuing to bring consumers great-tasting, all natural snack foods they have come to love and expect from Pirate Brands."

"Consistent with our acquisition strategy, we expect the acquisition to be immediately accretive to our earnings per share and free cash flow," Wenner added.

Following the acquisition, Pirate Brands is expected to generate net sales of $80m to $90m and adjusted EBITDA of $18m to $20m per annum after the business is fully integrated into B&G Foods.

B&G Foods and its subsidiaries manufacture, sell and distribute a wide range of branded shelf-stable foods across the US, Canada and Puerto Rico.

The company’s products are marketed under brands including Ac’cent, B&G, B&M, Baker’s Joy, Brer Rabbit, Cream of Rice, Cream of Wheat, Devonsheer, Don Pepino, Emeril’s and Grandma’s Molasses, among others.