B&G Foods acquires cookie and granola maker Back to Nature from Mondelēz
Better-for-you snack producer Back to Nature Foods is currently owned by a joint venture between private equity firm Brynwood Partners and Oreo cookie maker Mondelēz and other entities.
The acquisition is expected to be finalized during the third quarter of 2017.
“Consistent with our acquisition strategy, we are continuing to diversify our portfolio of brands and invest in brands and products that we believe are most relevant to today’s consumers,” said Robert Cantwell, president and CEO of B&G.
Advantage in natural space
Cantwell also told Dow Jones that adding Back to Nature would give B&G more leverage with natural food retailers, such as Whole Foods and Sprouts.
B&G expects the acquisition to be “immediately accretive” to its earnings per share, and it said Back to Nature “will generate an annualized basis net sales of $80m and adjusted EBITDA of $17m.”
The company has previously owned several products in the bakery and snack category, including New York Flatbreads and hot cereal brand Cream of Wheat.
B&G’s latest financial results showed its Q2 net sales had increased 20.2% to $368.1m. Its net sales for full-year 2017 are expected to reach $1.64bn and $1.67bn.