B&G Foods completes purchase of Cream of Wheat
February 26, 2007
by FoodBusinessNews.net Staff
PARSIPPANY, N.J. — B&G Foods, Inc. said its subsidiaries have completed the purchase of the Cream of Wheat and Cream of Rice brands from Kraft Foods Global, Inc. for $200 million in cash.
The Cream of Wheat and Cream of Rice brands generated net sales of approximately $60 million in 2006. Cream of Wheat and Cream of Rice are distributed nationally in various retail and food service channels.
"This is a very exciting acquisition for B&G Foods," said David L. Wenner, chief executive officer of B&G Foods. "We have acquired the number two brand in the hot cereal category, a brand with great name recognition and over 100 years of heritage.
"Cream of Wheat and Cream of Rice fit B&G Foods' acquisition strategy perfectly, and are brands that our company can nurture and hopefully grow through focus and innovation. Significantly, this acquisition together with the related financing brings our company to approximately $1 billion in total capitalization, a remarkable milestone for B&G Foods."
B&G Foods funded the acquisition with an additional $205 million of term loan borrowing under its new amended and restated credit facility.