B&G Foods has entered into an agreement to acquire Robert’s American Gourmet Food (DBA Pirate Brands), an all-natural snack foods company, from VMG Partners, Driven Capital Management, founder Robert Ehrlich and other entities and individuals, for approximately $195 million in cash. VMG Partners first invested in Robert’s American Gourmet Food in November 2008.
Robert’s American Gourmet was founded in 1987 and offers a number of natural gourmet snack lines marketed under the Pirate’s Booty, Smart Puffs and Original Tings brand names. The company’s products are sold nationwide in major supermarket chains and specialty stores. Robert’s American Gourmet is based in Sea Cliff, NY (www.piratebrands.com).
“We are delighted to add Pirate Brands, including the iconic Pirate’s Booty, to the B&G Foods family of brands. The acquisition of this business and its collection of growing natural snack foods, marks the second addition to our snack foods portfolio since we entered the category last October,” said David Wenner, President and Chief Executive Officer of B&G Foods.
B&G Foods projects that following the acquisition Pirate Brands will generate net sales of $80 million to $90 million and adjusted EBITDA of $18 million to $20 million on an annualized basis after the business is fully integrated into B&G Foods.
“VMG Partners and Driven Capital Management, under the leadership of Mike Repole, have done an outstanding job with Pirate Brands over the past five years, building upon the fun, innovative, all-natural brand originated by Robert Ehrlich in 1987. We look forward to continuing to bring consumers great-tasting, all natural snack foods they have come to love and expect from Pirate Brands,” said Mr. Wenner.
VMG Partners invests in branded consumer products companies in the lower middle market. Targeted industries include food, beverage, wellness, pet and household products, personal care and lifestyle brands. The firm is has offices in San Francisco and Los Angeles (www.vmgpartners.com).
B&G Foods and its subsidiaries manufacture, sell and distribute a portfolio of branded shelf-stable foods across the United States, Canada and Puerto Rico. Brands include Ac’cent, Baker’s Joy, Brer Rabbit, Cream of Rice, Cream of Wheat, Grandma’s Molasses, Mrs. Dash, Ortega, and Red Devil among others. B&G Foods also sells and distributes two branded household products, Static Guard and Kleen Guard. The company is based in Parsippany, NJ (www.bgfoods.com).
B&G Foods intends to fund the acquisition of Robert’s American Gourmet Food with the remaining net proceeds of its recently completed senior notes offering and revolving credit borrowings under an existing credit agreement.
© 2013 PEPD • Private Equity’s Leading News Magazine • 6-11-13
