B&G Foods Completes Acquisition of College Inn® and Kitchen Basics® Brands

B&G Foods, Inc. (NYSE: BGS) announced that it has completed the acquisition of the broth and stock business of Del Monte Foods Corporation II Inc. and its affiliates. The transaction, structured as an asset purchase, involved the College Inn® and Kitchen Basics® brands and was paid for with approximately $110 million in cash.

Transaction Details

  • Purchase price: $110 million (cash)
  • Assets acquired: All assets in Del Monte’s broth & stock business, including the College Inn® and Kitchen Basics® brands
  • Structure: Asset purchase with an estimated $15 million in tax benefits on a net‑present‑value basis
  • Projected performance (annualized):
  • Net sales: $110 million to $120 million
  • Adjusted EBITDA: $18 million to $22 million
  • Adjusted diluted earnings per share: $0.08 to $0.12

The acquisition is expected to be immediately accretive to B&G Foods’ earnings per share, adjusted EBITDA and free cash flow. Using the midpoint of the projected adjusted EBITDA range, the purchase price represents a multiple of approximately 5.5 times adjusted EBITDA (or 4.8 times the annualized projected adjusted EBITDA).

Context and Timing

The transaction was completed on 19 March 2026, coinciding with the sale of Del Monte Foods’ vegetable, fruit, tomato, and broth & stock businesses to various buyers, including B&G Foods. The sale of the broth & stock segment to B&G Foods was part of a broader divestiture strategy by Del Monte Foods to focus on its core product lines.

Company Profile

B&G Foods Inc. is a U.S.-based consumer staples company listed on the New York Stock Exchange. The firm manufactures, sells, and distributes shelf‑stable foods across North America through supermarkets, warehouses, distributors, mass merchants, catalogs, and other channels. Its product portfolio includes salsa, maple syrup, pickles, baked beans, liquid smoke, meat spreads, and vinegars. As of 17 March 2026, the company’s market capitalization was approximately $389 million, with a share price of $4.87 and a price‑to‑earnings ratio of 14.29.

Market Implications

The addition of College Inn® and Kitchen Basics® expands B&G Foods’ presence in the broth and stock category, a segment that complements its existing product lines. The expected revenue and earnings contributions from the acquired brands are anticipated to enhance the company’s overall financial performance and provide further growth opportunities within the food products sector.

Sources: investing.com, de.investing.com, stocktitan.net, prnewswire.com