The acquisition includes the 150-year-old Clabber Girl brand baking powder; Rumford, Davis, Hearth Club and Royal brands of retail baking powder, baking soda and corn starch; and Royal brand of foodservice dessert mixes.
B&G Foods, which is based in Parsippany, expects the acquired businesses to generate $70 to $75 million net sales annually.
“This acquisition is consistent with our longstanding acquisition strategy of targeting well-established brands with defensible market positions and strong cash flow at reasonable purchase price multiples,” stated Kenneth Romanzi, president and chief executive officer of B&G Foods. “Clabber Girl Corp. is the number one manufacturer of branded retail baking powder and also holds leadership positions in baking soda and corn starch.”
B&G Foods acquired Clabber Girl with cash on hand and revolving loans under its existing credit facility.