B&G Foods, Inc. (BGS) has agreed to acquire Del Monte Foods’ broth and stock business for approximately $110 million. This acquisition includes brands such as College Inn and Kitchen Basics and is aimed at strengthening B&G Foods’ core pantry categories. The deal is expected to close in the first quarter of 2026, pending Bankruptcy Court approval and the completion of additional asset sales by Del Monte.
The brands acquired are projected to generate annual sales between $110 million to $120 million, with adjusted EBITDA expected to be in the range of $18 million to $22 million, equating to an earnings contribution of approximately 8-12 cents per share. The acquisition price reflects a valuation multiple of about 5.5 times EBITDA, reduced to roughly 4.8 times when tax benefits are considered, with a net present value of $15 million anticipated from these tax advantages.
B&G Foods aims to enhance its operational efficiency and financial stability through this strategic acquisition, part of a broader strategy focused on portfolio simplification and cost initiatives. The company’s shares have declined 1.1% over the past month, but this acquisition is expected to positively impact profitability and cash flow shortly after closing.
