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May 5, 2014 /PRNewswire/ -- American Capital, Ltd. (Nasdaq: ACAS) ("American Capital") announced today that its portfolio company BCCK Holdings, Inc., parent to Specialty Brands of America, Inc. (collectively "SBA" or the "Company"), was sold to B&G Foods (NYSE: BGS), a manufacturer, marketer and distributor of high-quality, branded shelf-stable foods. American Capital and its affiliated funds received
$93 million in equity proceeds and realized a gain of
$60 million from the transaction, subject to post-closing adjustments. Of the total proceeds, American Capital received
$54 million in equity proceeds, realizing a gain of
$35 million from the transaction, subject to post-closing adjustments. American Capital also recognized
$20 million of dividend income and additional realized gains over the life of its investment. American Capital's compounded annual rate of return earned on its debt and equity securities over the life of its investment was 17%, including interest, realized gains and fees. American Capital received 2.2 times its equity investment, and realized a compounded annual rate of return of 19% over the life of its equity investment, including dividends and fees. Evercore acted as exclusive financial advisor to American Capital on the transaction.
"We are delighted with the results of our investment in SBA and proud of how the Company excelled throughout our investment and solidified its leading position within the packaged foods industry," said
Brian Graff, American Capital Senior Managing Director. "Our investment in SBA is an excellent example of American Capital's One Stop Buyout® strategy of investing in middle market companies with strong market positions and partnering with management teams to enhance performance, grow operations and create value."
SBA is a leading packaged foods company with a portfolio of strong and differentiated brands. SBA's largest brand is Bear Creek Country Kitchens ("Bear Creek"). Bear Creek is the leading brand of hearty dry soups in
the United States and also offers a line of savory pasta dishes and hearty rice dishes. SBA is also a leading marketer of maple syrup and sugar free syrups worldwide, with the Spring Tree® and Cary's® brands. The Company's brands also include New York Flatbreads and Canoleo margarine.
"Since our initial investment in 2003, we helped SBA achieve significant growth through acquisitions, new product launches and existing product enhancements," said
Jim Gregory, American Capital Principal, Buyouts Group. "We are pleased to have supported SBA's successful acquisition and integration of Bear Creek in 2005, which resulted in a new suite of nationally known food products as well as significant operational synergies. SBA owns leading brands in the pure maple syrup, sugar free table syrup and hearty dry soups categories and we believe it is a direct fit for B&G Foods' family of top brands."
Dom Bastien, SBA Founder and Chief Executive Officer said, "Our close working relationship with American Capital allowed us to significantly invest in our business to drive growth. We worked together to expand our product offering, enhance distribution efficiencies and ultimately increase our profitability. They understood our strategic vision for SBA and our products and together worked with us to advance SBA and as such, we are poised for even more growth under B&G Foods' leadership."