B&G Foods, Inc. announced Thursday a significant expansion of its shelf-stable portfolio, entering into an agreement to acquire the broth and stock business of Del Monte Foods Corporation II Inc. for approximately $110 million in cash.
The acquisition includes the iconic College Inn and Kitchen Basics brands. B&G Foods emerged as the winning bidder following a competitive auction held as part of Del Monte’s Chapter 11 bankruptcy proceedings.
The move aligns with B&G Foods’ core strategy of acquiring established, “pantry staple” brands that possess defensible market positions and reliable cash flow. By adding these broth and stock leaders, B&G Foods strengthens its presence in the home-cooking segment.
“The College Inn and Kitchen Basics brands complement our existing portfolio of brands,” Casey Keller, president and chief executive officer of B&G Foods said. “College Inn and Kitchen Basics are pantry staples for consumers seeking to prepare high-quality, innovative and versatile meals at home.”
B&G Foods expects the transaction to be immediately accretive to its earnings per share and free cash flow upon closing. The company has released the following annualized projections for the newly acquired business:
The purchase price represents a multiple of approximately 5.5 times adjusted EBITDA (or 4.8 times when factoring in net tax benefits), which the company characterizes as a reasonable multiple for well-established brands.
The acquisition is structured as an asset purchase and will be funded through a combination of cash on hand—including proceeds from recent divestitures—and existing credit facilities.
The deal is currently subject to Bankruptcy Court Approval, closing of two unrelated bankruptcy sales by Del Monte affiliates and customary closing conditions.
If these conditions are met, B&G Foods anticipates finalizing the acquisition during the first quarter of 2026.
Headquartered in Parsippany, B&G Foods manages a diverse portfolio of more than 50 recognizable brands, including Green Giant, Crisco, Ortega, Cream of Wheat, and Dash. The company distributes high-quality shelf-stable and frozen foods across the U.S., Canada, and Puerto Rico.
