B&G Foods announced a definitive agreement to purchase 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 is structured as a sale of assets and will close in the first quarter of 2026 after court approval and customary closing conditions.
The acquisition adds an estimated $110 million to $120 million in annualized net sales and $18 million to $22 million in adjusted EBITDA to B&G’s portfolio. At a purchase price of roughly 5.5 times the midpoint of projected adjusted EBITDA, the deal is priced at a reasonable multiple for a high‑margin category. B&G expects the new brands to be immediately accretive to earnings per share, adjusted EBITDA, and free cash flow.
B&G’s CEO Casey Keller said the deal “complements our existing portfolio of spices, Mexican meal‑prep, and baking staples and strengthens our position in the convenience‑food segment.” The acquisition is part of a broader turnaround strategy that has seen the company divest legacy assets, such as the Green Giant U.S. shelf‑stable business, and focus on high‑margin, defensible brands.
The transaction stems from Del Monte’s Chapter 11 bankruptcy auction. The sale of the broth and stock business is one of several asset disposals that Del Monte is completing to restructure its balance sheet. B&G will fund the purchase with cash on hand, proceeds from divestitures, and a revolving loan under its existing credit facility.
B&G’s recent financial results illustrate the context for the acquisition. In Q4 2024, net sales fell 4.6% to $551.6 million, driven by the Green Giant divestiture, lower unit volumes, and a negative foreign‑currency impact. In Q3 2025, the company reported earnings per share of $0.15, beating analyst expectations of $0.11, and revenue of $439.3 million, slightly above forecasts. Management has lowered full‑year 2025 guidance in light of macro‑economic headwinds, signaling caution while maintaining confidence in its core brands.
The acquisition is expected to strengthen B&G’s market position in the ready‑to‑heat broth and stock category, a high‑margin segment that aligns with the company’s focus on defensible brands with strong cash flow. By adding College Inn and Kitchen Basics, B&G expands its shelf‑stable product line and leverages its distribution network to drive sales growth in a category that has maintained steady demand for quick‑prep meal solutions.
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