B&G Foods Inc. (NYSE: BGS) made waves late on Friday after the company announced its most recent acquisition. B&G has now acquired Victoria Fine Foods from Huron Capital Partners and other sellers for roughly $70 million in cash.
The company projects that after it fully integrates the Victoria brand, the brand will generate on an annualized basis net sales of approximately $41.0 million and adjusted EBITDA of approximately $9.0 million.
B&G Foods funded the acquisition and related fees and expenses with cash on hand and additional revolving loans under its existing credit facility.
Some background on Victoria Fine Foods: It is a Brooklyn-based business founded in 1929. The Victoria brand offers a variety of premium pasta and specialty sauces, savory condiments and tasty gourmet spreads.
Robert C. Cantwell, president and CEO of B&G Foods, commented:
We are delighted to welcome Victoria Fine Foods and the Victoria premium pasta sauce brand to the B&G Foods family. The Victoria brand complements very well our existing portfolio of brands, including our Don Pepino pizza sauces, Sclafani crushed tomatoes and Emeril’s pasta sauces. And, consistent with our acquisition strategy, we expect the acquisition to be immediately accretive to our earnings per share and free cash flow.
So far in 2016, B&G Foods has outperformed the broad markets, with the stock up about 21%.
Shares of B&G Foods closed Friday at $42.50, with a consensus analyst price target of $50.00 and a 52-week trading range of $31.81 to $52.84. In the after-hours trading session, the stock was up over 1% at $43.00.