New York Style and Old London Acquisition
On September 19, 2012, B&G Foods announced 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 manufacturing facility in Yadkinville, North Carolina. Subject to the satisfaction of customary closing conditions. B&G Foods expects the acquisition to close during the fourth quarter of 2012.
Common Stock Offering
On October 9, 2012, B&G Foods completed an underwritten public offering of 4,173,540 shares of its common stock. The proceeds of the offering were approximately $120.3 million, after deducting underwriting discounts and commissions and other estimated offering expenses. The offering was made by means of a prospectus and the related prospectus supplement included as part of an effective shelf registration statement previously filed with the SEC. B&G Foods expects to use the net proceeds of the offering for general corporate purposes, which may include among other things, the payment of all or a portion of the purchase price and related transaction costs for the New York Style and Old London brands acquisition or any future acquisitions, and the repayment or retirement of a portion of B&G Foods’ long-term debt.Increase in Quarterly Dividend Rate On October 16, 2012, the Company announced that its Board of Directors has increased the Company’s quarterly dividend rate from $0.27 per share of common stock to $0.29 per share of common stock. On an annualized basis, the dividend increases from $1.08 per share to $1.16 per share. The first quarterly dividend at the new rate is payable on January 30, 2013 to shareholders of record as of December 31, 2012. At the closing market price of the common stock on October 16, 2012, the new dividend represents an annualized yield of 4.1%.