B&G Foods on Wednesday announced an agreement to acquire ACH Food Companies' spices and seasonings business for $365 million.
New Jersey-based B&G, the owner of dozens of brands including Emeril’s, Green Giant and Ortega, said that ACH is a leading supplier of spices to customers in the retail and food service industries.
The deal includes the Spice Islands, Tone’s and Durkee brands, as well as Weber brand sauces — which are sold under license from the grill company — and a manufacturing facility in Ankeny, Iowa.
B&G plans to fund the acquisition with cash on hand — including proceeds from an August IPO — and additional revolving loans.
"This acquisition will significantly broaden our position in the large and growing spices and seasonings category,” B&G President and CEO Robert Cantwell said in a statement.
B&G officials expect the acquisition to generate $220 million to $225 million in annual net sales and adjusted earnings of $38 million to $40 million. The deal will also result in about $83 million in tax benefits.
