B&G Foods Inc. agreed Friday, Oct. 28, to gulp down Mrs. Dash salt-free seasonings and five other Culver brands from Anglo-Dutch consumer group Unilever NV/plc for about $325 million in cash.
The buyer, based in Parsippany, N.J., will also add Molly McButter fat-free butter sprinkles, Sugar Twin calorie-free sweetener, Baker's Joy baking spray, Static Guard spray and Kleen Guard furniture polish in the deal.
The brands, acquired in May by Unilever as a result of its $3.7 billion purchase of the Alberto Culver Co., generated about $90 million in combined sales in the 12 months ended Sept. 30. B&G Foods projects that the brands will earn Ebitda of $35 million to $38 million during fiscal 2012.
"We are very pleased to add these six brands to the B&G portfolio," which includes Cream of Wheat cereal, Brer Rabbit molasses, and Joan of Arc canned beans, David L. Wenner, president and chief executive of B&G Foods, said in a statement.
He added: "We expect the acquisition to enhance the already high margin structure of B&G Foods and to be immediately accretive to our earnings per share and free cash flow."
B&G is expected to give more details about its acquisition, due to close before the end of this year, in a conference call scheduled for Tuesday, Nov. 1.
The buyer expects to fund the purchase with additional debt and has received commitments for senior secured debt financing from Credit Suisse, Barclays Bank plc and Royal Bank of Canada to cover the purchase price and refinance existing facilities.
In a short statement, Unilever said the disposal is "consistent with Unilever's continued focus on brands with global potential in core categories" and noted that the brands it is selling are manufactured at third-party facilities.
Credit Suisse, Barclays Capital and RBC Capital Markets also acted as financial advisers to B&G Foods, which turned to Christopher Karras at Dechert LLP for legal advice.
Unilever enlisted Matt Meyer at Deloitte Corporate Finance and Mark Greene, Michael Schler and Eric Hilfers at Cravath, Swaine & Moore LLP. Unilever's in-house counsel was David Schwartz.
David Marcus contributed to this report.