ACAS Completes Sale of Specialty Brands of America

American Capital has completed the sale of its portfolio company Specialty Brands of America to B&G Foods for $155 million in cash.  American Capital first invested in Specialty Brands in January 2004.

Specialty Brands is a packaged foods company with a portfolio of brands.  The company’s largest brand is Bear Creek Country Kitchens, a brand of dry soups, pasta dishes and rice dishes.  Specialty Brands also offers Spring Tree, Cary’s and MacDonald’s pure maple syrups and pancake syrups, New York Flatbreads and Canoleo margarine.  Specialty Brands is based on Long Island in Westbury, NY (www.sbamerica.com).

B&G Foods projects that Specialty Brands will generate on an annualized basis after being fully integrated into B&G Foods net sales of approximately $85 million and adjusted EBITDA of approximately $20 million.  B&G Foods funded the acquisition with cash on hand and borrowings under its existing revolving credit facility.

B&G Foods (NYSE:BGS) and its subsidiaries manufacture, sell and distribute a portfolio of branded shelf-stable foods across the United States, Canada and Puerto Rico. B&G Foods’ product brands include Ac’cent, B&G,B&M, Baker’s Joy, Brer Rabbit, Cream of Rice, Cream of Wheat, Devonsheer, Don Pepino, Emeril’s, Grandma’s Molasses, JJ Flats, Joan of Arc, Las Palmas, Maple Grove Farms, Molly McButter, Mrs. Dash, New York Style, Old London, Original Tings, Ortega, Pirate’s Booty, Polaner, Red Devil, Regina, Rickland Orchards, Sa-són, Sclafani, Smart Puffs, Sugar Twin, Trappey’s, TrueNorth, Underwood, Vermont Maid and Wright’s. B&G Foods also sells and distributes two branded household products, Static Guard and Kleen Guard. B&G Foods is based in Parsippany, NJ (www.bgfoods.com).

American Capital (NASDAQ: ACAS) is a publicly traded private equity firm and asset manager that originates, underwrites and manages investments of $10 million to $750 million in middle market private equity, leveraged finance, real estate and structured products. Founded in 1986, American Capital has $93 billion in total assets under management and has eight offices in the US, Europe and Asia.  The firm is headquartered in Bethesda (www.AmericanCapital.com).

American Capital was advised by Evercore Group (www.evercore.com) on this transaction.

© 2014 PEPD • Private Equity’s Leading News Magazine • 4-24-14