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B&G to sell Pirate Brands to Hershey for $420M

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B&G Foods Inc.'s other brands include Cream of Wheat, Green Giant, Le Sueur, Mrs. Dash, Ortega and Polaner.
B&G Foods Inc.'s other brands include Cream of Wheat, Green Giant, Le Sueur, Mrs. Dash, Ortega and Polaner. - ()

B&G Foods Inc. said Thursday it is selling its Pirate Brands business to The Hershey Co. for $420 million in cash, subject to customary closing and post-closing adjustments.

Pirate Brands is a snack-food division of B&G that includes the Pirate’s Booty, Smart Puffs and Original Tings brands.

B&G acquired Pirate Brands in 2013 for approximately $195 million.

“Pirate Brands is a terrific business that has performed very well for us and we believe it will continue to thrive under the ownership of The Hershey Co.,” said Robert Cantwell, president and CEO of B&G Foods, in a prepared statement. “The transaction we are announcing today is a great example of our ability to create meaningful shareholder value through accretive M&A by acquiring and investing in on-trend food brands.”

B&G said it intends to use the net proceeds from the sale for the repayment of long-term debt and possible acquisitions. The company expects the sale to close in the fourth quarter.

Based in Parsippany, B&G boasts a diverse portfolio of more than 50 food brands, including Back to Nature, B&G, B&M, Cream of Wheat, Green Giant, Las Palmas, Le Sueur, Mama Mary’s, Maple Grove Farms, Mrs. Dash, New York Style, Ortega, Polaner, SnackWell’s, Spice Islands and Victoria.

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Howard Burns

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