B&G Foods, Inc. has completed the acquisition of Robert’s American Gourmet Food, LLC dba Pirate Brands, a leader in the all-natural snack foods category, from VMG Partners, Michael Repole, founder Robert Ehrlich and certain other entities and individuals, for the previously announced price of $195 million in cash, subject to adjustments based upon indebtedness, working capital and transaction expenses of the business at closing. Pirate Brands’ deliciously baked, all-natural, trans fat free and gluten free snack brands include Pirate’s Booty, Smart Puffs and Original Tings. B&G Foods expects the acquisition to be immediately accretive to earnings per share and free cash flow.
B&G Foods funded the acquisition and will pay related fees and expenses with the remaining net proceeds of its recently completed senior notes offering and approximately $40 million of additional revolving credit borrowings under its credit agreement. B&G Foods amended its credit agreement last week to, among other things, increase the available borrowing capacity under its revolving credit facility by $100 million. Following the closing, the available borrowing capacity under the revolving credit facility is approximately $254.5 million.
An SEC 8-K filing notes that Credit Suisse acted as administrative agent and collateral agent on the amendment. To view the SEC filing, click here.
B&G Foods and its subsidiaries manufacture, sell and distribute a diversified portfolio of high-quality, branded shelf-stable foods across the United States, Canada and Puerto Rico. Based in Parsippany, New Jersey, B&G Foods’ products are marketed under many recognized brands, including Ac’cent, B&G, B&M, Baker’s Joy, Brer Rabbit, Cream of Rice, Cream of Wheat, Devonsheer, Don Pepino, Emeril’s, Grandma’s Molasses, JJ Flats, Joan of Arc, Las Palmas, Maple Grove Farms, Molly McButter, Mrs. Dash, New York Style, Old London, Ortega, Polaner, Red Devil, Regina, Sa-són, Sclafani, Sugar Twin, Trappey’s, TrueNorth, Underwood, Vermont Maid, Wright’s and now, Pirate’s Booty, Smart Puffs and Original Tings. B&G Foods also sells and distributes two branded household products, Static Guard and Kleen Guard.