The deal is subject to adjustments based upon indebtedness, working capital and transaction expenses of the business at closing.
Pirate Brands’ snack brands include Pirate’s Booty, Smart Puffs and Original Tings. B&G Foods expects the acquisition to be immediately accretive to earnings per share and free cash flow.
B&G Foods funded the acquisition and will pay related fees and expenses, with the remaining net proceeds of its recently completed senior notes offering and approximately $40m of additional revolving credit borrowings under its credit agreement.
B&G Foods amended its credit agreement last week to, among other things, increase the available borrowing capacity under its revolving credit facility by $100m. Following the closing of the acquisition, the available borrowing capacity under the revolving credit facility is $254.5m.
© FoodBev Media Ltd 2024