B&G Foods, Inc. completed the acquisition of Del Monte Foods Corporation II Inc.’s broth and stock business, which includes the College Inn® and Kitchen Basics® brands, for approximately $110 million in cash. The transaction closed on March 19 2026.
The deal broadens B&G’s ready‑to‑eat and convenience‑food offerings and complements its existing spices, Mexican meal‑prep and baking staples lines. Management said the acquisition strengthens the company’s flavor‑solution segment and creates cross‑sell opportunities that should drive higher‑margin growth in a competitive food‑service market.
Financially, the acquisition is expected to be immediately accretive to earnings per share, adjusted EBITDA and free cash flow. Analysts project the acquired brands will generate $110 million to $120 million in net sales and $18 million to $22 million in adjusted EBITDA, contributing $0.08 to $0.12 to adjusted diluted EPS. The purchase price represents a multiple of roughly 5.5 times projected adjusted EBITDA, or 4.8 times net of expected tax benefits of about $15 million. The asset‑purchase structure is expected to yield significant tax advantages.
B&G has been actively divesting lower‑margin assets—such as its Le Sueur vegetable line, Green Giant frozen business and Back to Nature snacks—to focus on higher‑margin categories. The College Inn and Kitchen Basics acquisition fits into this portfolio‑optimization strategy, streamlining operations and supporting the company’s goal of reducing debt while expanding its core shelf‑stable business.
B&G’s financial health provides context for the deal. Fiscal 2025 revenue was $1.83 billion, down from the prior year, and the company reported a net loss of $43.26 million. Guidance for fiscal 2026 projects net sales of $1.655 billion to $1.695 billion. In Q4 2025, B&G posted an adjusted EPS of $0.28 on revenue of $539.56 million, meeting consensus estimates. The acquisition is intended to offset declining revenues in some segments and improve overall profitability.
Management emphasized the strategic fit and accretive nature of the deal. CEO Casey Keller said, "We are very excited to be the winning bidder for Del Monte's broth and stock business and to add the College Inn and Kitchen Basics brands to the B&G Foods portfolio." He added, "The College Inn and Kitchen Basics brands complement our existing portfolio of brands. College Inn and Kitchen Basics are pantry staples for consumers seeking to prepare high‑quality, innovative and versatile meals at home." Keller also noted that portfolio optimization initiatives, including acquisitions like this one, are designed to enhance margins, strengthen cash flows and simplify operations.
The acquisition positions B&G Foods for higher‑margin growth, leverages cross‑sell opportunities, and supports its broader strategy of focusing on core, high‑margin categories while reducing leverage.
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