B&G Foods, Inc. (NYSE: BGS) announced today that it has entered into an agreement to acquire the New York Style ® and Old London ® brands from Chipita America, Inc. for approximately $62.5 million in cash. The acquisition includes a state-of-the-art manufacturing facility in Yadkinville, North Carolina, with approximately 250 employees.
David L. Wenner, President and Chief Executive Officer of B&G Foods, stated: “We are very excited to add New York Style and Old London to the B&G Foods family. The addition of these brands marks our entry into the fast growing snack category.” Mr. Wenner added, “Consistent with our prior acquisitions, we expect this acquisition to be immediately accretive to our earnings per share and free cash flow.”
B&G Foods projects that the brands will generate net sales of approximately $45 to $50 million and EBITDA of approximately $8 to $9 million in 2013.
New York Style, the maker of Bagel Crisps ® , was brought to life in a small cheese shop when the owners decided to serve their gourmet cheese samples on toasted bagel slices. When customers started asking to purchase the savory, crunchy snacks, New York Style Bagel Crisps were introduced and became an instant hit. Since 1985, New York Style has been making foods for snacking and entertaining, including Original Bagel Crisps, Mini Bagel Crisps, Pita Chips and Panetini Italian Toast. New York Style products offer the authentic taste of New York City’s traditional neighborhood bakeries.Old London was founded in 1932 as Devonsheer Melba Company. Eventually, Devonsheer Melba became part of the Old London brand name, which offers a larger array of Melba products. Old London has a wide variety of flavors available in Melba Toasts, Melba Rounds and other snacks. Old London also markets specialty snacks under the Devonsheer ® and JJ Flats ® names. B&G Foods expects the acquisition to close during the fourth quarter of 2012, subject to the satisfaction of customary closing conditions.
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