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BG Foods acquires vegetable brands from General Mills

Parsippany-based B&G Foods announced that it has completed the acquisition of the iconic Green Giant and Le Sueur frozen and canned vegetables brands from General Mills.The deal, effective Tuesday, was conducted for the previously announced price of $765 million in cash, plus an inventory adjustment at closing of approximately $58 million.

B&G Foods projects that the Green Giant and Le Sueur brands will generate annualized net sales of approximately $550 million, with adjusted earnings before interest, taxes, depreciation and amortization of approximately $95 million to $100 million, and earnings per share of approximately 60 cents.

Because the acquisition was structured as an asset purchase, B&G Foods expects to get approximately $137 million in tax benefits on a net present value basis.

B&G Foods funded the purchase price, the inventory adjustment at closing, initial working capital requirements and related fees and expenses with additional revolving loans and $750 million of new incremental term loans under its existing credit facility.

Andrew Sheldon
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