B&G Foods to acquire brands from Chipita America
PARSIPPANY, N.J. — B&G Foods, Inc. has agreed to acquire the New York Style and Old London brands from Chipita America, Inc. for about $62.5 million.
“We are very excited to add New York Style and Old London to the B&G Foods family,” said David L. Wenner, president and chief executive officer. “The addition of these brands marks our entry into the fast growing snack category. Consistent with our prior acquisitions, we expect this acquisition to be immediately accretive to our earnings per share and free cash flow.”
B&G expects the brands will generate net sales of about $45 million to $50 million and EBITDA of about $8 million to $9 million in 2013. The acquisition includes a manufacturing facility in Yadkinville, N.C., with about 250 employees.
The acquisition is expected to close during the fourth quarter of 2012.