B&G Foods Completes $110M Acquisition of College Inn and Kitchen Basics
B&G Foods completed the $110 million acquisition of Del Monte’s College Inn and Kitchen Basics broth and stock business, expecting annual net sales of $110–120 million, adjusted EBITDA of $18–22 million and EPS accretion of $0.08–0.12. The deal yields $15 million in NPV tax benefits at a 5.5× EBITDA multiple.
1. Acquisition Completion
B&G Foods finalized its purchase of Del Monte’s College Inn and Kitchen Basics broth and stock brands for $110 million in cash, marking its entry into the premium broth and stock segment.
2. Projected Financial Contributions
The company forecasts annual net sales of $110–120 million, adjusted EBITDA of $18–22 million and EPS accretion of $0.08–0.12, alongside immediate enhancements to free cash flow.
3. Valuation and Tax Benefits
The asset purchase was executed at a 5.5× adjusted EBITDA multiple (4.8× net of expected $15 million NPV tax benefits) and was funded through cash on hand and revolving credit.
4. Portfolio Impact
This acquisition expands B&G Foods’ shelf-stable brand portfolio to more than 50 names, strengthening its presence in broth, stock and pantry staples categories.