B&G Foods (BGS) is acquiring Specialty Brands of America, a maker or soups, pasta/rice dishes, syrups, flatbreads, margarine, and other packaged foods, for $155M in cash.
Specialty Brands is expected to have annual revenue of $85M, and adjusted EBITDA of $20M. The deal is expected to close in Q2 or Q3, and be funded by a mixture of cash on hand and credit facility borrowings.
B&G expects the acquisition to be immediately accretive to EPS and free cash flow.
Shares of B&G Foods (BGS +6.9%) gain after the firm announces a deal to acquire six Culver specialty brands from Unilever (UL -0.5%) for $325M. The company expects the acquisition to be immediately accretive to earnings and free cash flow.
Sources say Ralcorp (RAH) has been shopping around its Post cereals division to GIS, PEP, K, BGS and even BX and KKR in recent weeks, but has found little interest in the ~$2B unit. It's questionable whether a sale would give RAH enough firepower to fend off ConAgra (CAG), but no sale means it will need to rely on its poison pill and legal red-tape to block the deal.