B&G Foods announces acquisition of Crisco for USD 550 million
Category: #retail  By Saipriya Iyer  Date: 2020-12-03
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B&G Foods announces acquisition of Crisco for USD 550 million

B&G Foods Inc, the U.S-based company offering branded foods, has reportedly announced the acquisition of the ‘Crisco’ brand from The J. M. Smucker Co. for USD 550 million. As a part of the deal, B&G also acquired the Cincinnati-based manufacturing and warehouse facility.

The deal, which will be completed in cash, is currently subject to post-closing inventory adjustments. The company expects that the acquisition will benefit its stockholders and generate free cash flow. The company projects that in 2021, the procured business will continue to benefit from surging demand due to the pandemic and generate around USD 270 million in annual sales, adjusted EBITDA in the range of USD 65 million to USD 70 million, and adjusted diluted earnings/share in the range of ¢45 to¢50.

Speaking on which, Mark Smucker, CEO and President at The J.M. Smucker Co. said that Crisco is a renowned brand that is cherished by consumers, and this business has been a major contributor to the company’s financial performance.

However, the company’s strategic priorities include an amplified focus and allocation of resources toward pet snacks and pet food, coffee, and snacking to maintain momentum in these categories, Mr. Smucker said, while adding that the recent announcement helps the company to further grow its core business and provide value to its shareholders.

Sources cite that the deal is anticipated to close in Q4 2020 and is subject to satisfactory customer closing and regulatory conditions.

For the record, Crisco is one of the leading brands of shortening formed by The J.M. Smucker Company popular in the US. Established in 1911 by Protector & Gamble, it was the first shortening to be produced completely of vegetable oil. The company sells numerous products including various olive oils, cooking spray, and other cooking oils, including olive, sunflower, corn, peanut, canola, and blended oils.

Source credit - https://www.businesswire.com/news/home/20201201005975/en

 

 

 



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Saipriya Iyer

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Saipriya Iyer

Saipriya Iyer develops content for Market Size Forecasters, Algosonline, and myriad other platforms. A computer engineer by profession, she ventured into the field of writing for the love of playing with words. Having had a previous experience of 3 years under her bel...

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