B&G Foods to acquire Back to Nature Foods

B&G Foods (BGS) has announced that it has entered into a definitive agreement to acquire Back to Nature Foods Company from Brynwood Partners, Mondelez (MDLZ) and certain other entities and individuals for approximately $162.5M in cash, subject to customary closing and post-closing working capital adjustments.

Back to Nature Foods Company produces cookies, crackers, granolas, juices, and nuts. Its cookies include apple cinnamon oat grahams, California lemons, chocolate chunks, cranberry pecan granolas, crispy oatmeal, dark chocolate and oats granolas, fudge mints, honey graham sticks, honey nut granolas, Madagascar vanillas, mini vanilla wafers, and peanut butter creams.

B&G Foods expects the acquisition to close during Q3 of 2017, subject to customary closing conditions, including the receipt of regulatory approvals.

B&G Foods expects the acquisition to be immediately accretive to its EPS and free cash flow and projects that following the completion of a six-month integration period, the acquired business will generate on an annualized basis net sales of approximately $80M and adjusted EBITDA of approximately $17M.

B&G Foods intends to fund the acquisition and related fees and expenses with additional revolving loans under its existing credit facility.

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