Brynwood VI and Mondelez to sell their Back to Nature Foods brand to B&G Foods for a valuation exceeding USD 160 million

B&G Foods Inc. the renowned household product and shelf-stable foods manufacturer, has announced its conclusive partnership with a consortium of food companies for the acquisition of Back to Nature Foods Co. LLC, a global leader in the better-for-you snack food division. The food brand, owned by Mondelez International, Brynwood Partners VI LP, and an association of other entities, has been purchased by B&G Food in an all-cash transaction that amounted to around USD 162.5 million.

For the uninitiated, Brynwood VI, a subsidiary of the private equity firm Brynwood Partners, headquartered in Greenwich, Connecticut, and Mondelez International, headquartered in East Hanover, New Jersey, formed the Back to Nature brand in 2012, as a lucrative joint venture amidst the two of them. Of these, Brynwood VI held the operating control, while Mondelez apparently held a minority position. A year post the joint venture came into being, the latter sold its controlling interest in the SnackWell brand to Brynwood Partners. As on today, Snackwell and Back to Nature cumulatively earn USD 80 million in annual sales. Back to Nature Foods is reportedly a leading cracker and cookie brand, in addition to being one of the pioneers in the better-for-you snack category. The brand encompasses Non-GMO Project Verified, gluten-free, organic food products including cakes, nuts and trail mixes, cookies, popcorn, pretzels, juices, and granola bars.

B&G Foods anticipates that its acquisition be promptly augmented to free cash flow and its earnings per share. The company has also states that it expects the acquired brand to generate a valuation of around USD 80 million, six months post its inclusion into the B&G Foods family. This apart, it also projects the low-calorie cookie brand to generate adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of nearly USD 17 million.

The Chief Executive Officer and President of B&G Foods has been quoted stating that the company is elated to welcome Back to Nature to the B&G Foods brand family. Through this acquisition and many others, such as the behemothic Green Giant deal and the Victoria Fine Foods takeover, the food company aims to expand its product offering and make vital investments in brands that connect the best with the modern-day consumer.

As per reports, B&G Foods is now awaiting the completion of the conventional norms subject to deal closures, which includes the standard procedures to be adhered to at the time of customary closing as well as the working capital adjustments. The dried processed foods market giant expects that deal will be officially closed by Q3 2017, post the conditions put forth by regulatory bodies are complied, in addition to the customary closure conditions.

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Saipriya Iyer

Saipriya Iyer develops content for Market Size Forecasters. A computer engineer by profession, she ventured into the field of writing for the love of playing with words. Having had a previous experience of 3 years under her belt, she has dabbled with website content writing, content auditing, tech w...

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