This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

American Capital Receives $54 Million From The Sale Of Specialty Brands Of America And Generates A 17% Return On Its Investment

Stocks in this article: ACAS BGS

BETHESDA, Md., 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."

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs