B&G Foods to Buy ACH Food's Spice Business for $365 Million

   By Tess Stynes 
 

Grocery conglomerate B&G Foods Inc. (BGS) agreed to acquire the spices and seasonings business of ACH Food Companies Inc. for roughly $365 million, expanding its position in the category.

With the deal, B&G adds the Spice Islands, Tone and Durkee spice brands as well as Weber sauces and seasonings, which are sold under license. B&G also gains a factory in Arkeny, Iowa.

ACH Food, the North American unit of Associated British Foods PLC (ASBFY, ABF.LN), markets and manufactures cooking and baking ingredients such as Mazola corn oil.

New Jersey-based B&G, whose brands include its namesake pickles, has grown through acquisitions, including its $765 million purchase of the Green Giant and Le Sueur brands from General Mills last year.

B&G expects the deal with ACH Foods, scheduled to close in the fourth quarter, will immediately add to its per-share earnings and cash flow.

The company estimates that starting next year, the acquired businesses will generate annual per-share adjusted earnings of 26 cents to 28 cents and revenue of $220 million to $225 million.

Write to Tess Stynes at [e-mail]

(END) Dow Jones Newswires

September 21, 2016 16:22 ET (20:22 GMT)

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