We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
B&G Foods (BGS) Takes Over Victoria Fine Foods for $70M
Read MoreHide Full Article
Snack foods manufacturer B&G Foods, Inc. (BGS - Free Report) seems to be on an acquisition spree. After acquiring the spices and seasonings business of ACH Food Companies, Inc last month, B&G Foods has now taken over Victoria Fine Foods Holding Company and Victoria Fine Foods, LLC from Huron Capital Partners and other sellers for roughly $70 million in cash.
Founded in 1929, Brooklyn-based Victoria Fine Foods brand offers a variety of premium pasta and specialty sauces, savory condiments and tasty gourmet spreads. Victoria sauces are made using traditional cooking methods and are slow kettle-cooked in small batches to ensure rich flavor and a homemade taste.
Integrating Victoria Fine Foods and the Victoria premium pasta sauce brand to the B&G Foods family complements the company’s existing portfolio of brands, comprising Don Pepino pizza sauces, Sclafani crushed tomatoes and Emeril’spasta sauces.
With the acquisition of ACH Food, B&G Foods bolstered its presence in the shelf-stable product market. B&G Foods already sells staples like Mrs. Dash salt-free flavoring and Vermont Maid syrups. Now, with the addition of Victoria brands, the company has broadened its sauce line of offerings.
Financially, B&G Foods expects this acquisition to prove immediately accretive to its earnings and free cash flow. The company expects the Victoria brand to generate net sales of approximately $41 million on an annualized basis and adjusted EBITDA of approximately $9.0 million post full integration.
Notably, acquisitions have been a key growth driver for B&G Foods. Total revenue of $318.2 million in the third quarter of 2016 was driven by its recent acquisitions. Revenues in the third quarter increased 49.2% year over year on strong sales at Green Giant, which was taken over in Nov 2015.
Also, the company reported adjusted earnings per share of 56 cents that beat the Zacks Consensus Estimate of 52 cents by 7.7%. Earnings also increased 43.6% from the year-ago quarter on higher sales and margins.
Share Price Performance
B&G Foods has outperformed the Zacks categorized Food-Miscellaneous/Diversified Market year to date, with shares gaining 21.4% compared to the broader market’s tepid growth of 2.4%.
Zacks Rank & Key Picks
BGS Foods currently carries a Zacks Rank #3 (Hold).
Ingredion has a decent earnings surprise history, beating the Zacks Consensus Estimate in all of the last four quarters, the average earnings surprise being 10.47%.
Lancaster Colony’s fiscal 2017 earnings are expected to grow 7.3%. Mondelez will likely witness 11.4% EPS growth in 2016.
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 "Strong Buy" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 "Strong Sells" and other private research. See these stocks free >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
B&G Foods (BGS) Takes Over Victoria Fine Foods for $70M
Snack foods manufacturer B&G Foods, Inc. (BGS - Free Report) seems to be on an acquisition spree. After acquiring the spices and seasonings business of ACH Food Companies, Inc last month, B&G Foods has now taken over Victoria Fine Foods Holding Company and Victoria Fine Foods, LLC from Huron Capital Partners and other sellers for roughly $70 million in cash.
B&G FOODS CL-A Price
B&G FOODS CL-A Price | B&G FOODS CL-A Quote
B&G Foods’ Benefits
Founded in 1929, Brooklyn-based Victoria Fine Foods brand offers a variety of premium pasta and specialty sauces, savory condiments and tasty gourmet spreads. Victoria sauces are made using traditional cooking methods and are slow kettle-cooked in small batches to ensure rich flavor and a homemade taste.
Integrating Victoria Fine Foods and the Victoria premium pasta sauce brand to the B&G Foods family complements the company’s existing portfolio of brands, comprising Don Pepino pizza sauces, Sclafani crushed tomatoes and Emeril’spasta sauces.
With the acquisition of ACH Food, B&G Foods bolstered its presence in the shelf-stable product market. B&G Foods already sells staples like Mrs. Dash salt-free flavoring and Vermont Maid syrups. Now, with the addition of Victoria brands, the company has broadened its sauce line of offerings.
Financially, B&G Foods expects this acquisition to prove immediately accretive to its earnings and free cash flow. The company expects the Victoria brand to generate net sales of approximately $41 million on an annualized basis and adjusted EBITDA of approximately $9.0 million post full integration.
Notably, acquisitions have been a key growth driver for B&G Foods. Total revenue of $318.2 million in the third quarter of 2016 was driven by its recent acquisitions. Revenues in the third quarter increased 49.2% year over year on strong sales at Green Giant, which was taken over in Nov 2015.
Also, the company reported adjusted earnings per share of 56 cents that beat the Zacks Consensus Estimate of 52 cents by 7.7%. Earnings also increased 43.6% from the year-ago quarter on higher sales and margins.
Share Price Performance
B&G Foods has outperformed the Zacks categorized Food-Miscellaneous/Diversified Market year to date, with shares gaining 21.4% compared to the broader market’s tepid growth of 2.4%.
Zacks Rank & Key Picks
BGS Foods currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the same space include Ingredion Incorporated (INGR - Free Report) , Lancaster Colony Corporation (LANC - Free Report) and Mondelez International, Inc. (MDLZ - Free Report) , all carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Ingredion has a decent earnings surprise history, beating the Zacks Consensus Estimate in all of the last four quarters, the average earnings surprise being 10.47%.
Lancaster Colony’s fiscal 2017 earnings are expected to grow 7.3%.
Mondelez will likely witness 11.4% EPS growth in 2016.
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 "Strong Buy" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 "Strong Sells" and other private research. See these stocks free >>