- CEO and president of B&G Foods, Inc. Bob Cantwell announced at the ICR Conference that the company is looking to acquire another large business, following the success of its Green Giant purchase in 2015, according to Food Business News.
- In November, B&G Foods acquired the spices business of ACH Food Companies for approximately $365 million, and purchased Victoria Fine Foods LLC for approximately $70 million a month later.
- Cantwell noted that B&G Foods will also take a more aggressive innovation strategy in 2017 in order to remain competitive, particularly with its Ortega brand.
Since B&G Foods already has a frozen vegetable brand, a spice business and snacks and pasta sauces among other assets, the next acquisition could bolster one of these segments or go in an entirely new direction. The company is known for its keen sense in acquiring profitable brands to add to its portfolio. Green Giant, which B&G bought in 2015, drove a 49.2% growth in sales for the larger company during the most recent quarter, and $113.8 million in net sales.
Analysts over the years seem to favor B&G's taking another direction in its next acquisition. In the past, the company has bought smaller brands and has had a willingness to buy in bulk.
It's clear that there’s strong interest in the company among investors. According to Sports Perspective & Market News, B&G Foods, Inc. was given an average rating of “hold” from the 10 brokerages that are presently covering the firm. Two analysts gave it a “buy” recommendation and one has assigned a “strong buy” recommendation for the company.