- B&G Foods announced Friday it has completed a $70 million cash acquisition of Victoria Fine Foods Holding Company and Victoria Fine Foods, LLC from Huron Capital Partners and other sellers, according to a news release.
- Brooklyn-based Victoria Fine Foods produces "a variety of premium pasta and specialty sauces, savory condiments and tasty gourmet spreads" that the company slow kettle-cooks in small batches to retain flavor and a homemade appeal, according the news release.
- Keeping with its acquisition strategy, Victoria Fine Foods is expected to immediately add value to the company's earnings per share and free cash flow. B&G projects annual brand sales of $41 million and adjusted EBITDA of about $9 million.
This is the latest in a string of struggling brand acquisitions B&G Foods has pursued in recent years. Before this, the company's most recent deal was acquiring the spices business of ACH Food Companies, which includes brands like Spice Islands, Tone's and Durkee, announced in September.
The company's so-far-successful strategy has been acquiring brands that other companies were attempting to divest. B&G then employs the innovation and cost-cutting measures needed to return the brands to growth, and reaps the benefits of its expanded portfolio.
B&G Foods recently staged a turnaround for the Green Giant frozen vegetables brand, which it acquired from General Mills last year. Through new product innovations and increased marketing spend, B&G has worked to "awaken the Green Giant," as the company internally describes its strategy for the brand.
Victoria Fine Foods may be less of a challenge from a category perspective. Cooking sauces, condiments and spreads that make meal preparation easier for consumers are surging in popularity today, especially if those products adhere to a clean label and homemade vibe.
But the Victoria brand doesn't have the widespread reach and recognition of Green Giant. In many cases, B&G simply needed to convince former Green Giant buyers that the brand had something new to offer.
With a lesser-known brand like Victoria, B&G may also have to find ways to attract entirely new customers.