USA: B&G Foods acquires Del Monte broth brands

B&G Foods, the US holding company behind brands such as Crisco and Green Giant, has agreed to acquire the broth and stock business of Del Monte Foods for $110 million in cash.

The transaction, which includes the College Inn and Kitchen Basics brands, emerged from a competitive auction process conducted as part of Del Monte Foods’ Chapter 11 bankruptcy proceedings. The deal will see B&G Foods add two well-established “pantry staples” to its portfolio, which the company expects will generate annual net sales of approximately $110 million to $120 million.

Casey Keller, President and CEO of B&G Foods, commented: “The College Inn and Kitchen Basics brands complement our existing portfolio of brands… This acquisition is consistent with our longstanding acquisition strategy of targeting well-established brands with defensible market positions and strong cash flow at reasonable purchase price multiples”.

The acquisition is expected to be immediately accretive to the company’s earnings per share and free cash flow. B&G Foods projects the business will deliver an adjusted EBITDA of between $18 million and $22 million annually.

The sale is part of a broader court-supervised break-up of Del Monte Foods assets. In parallel transactions, Fresh Del Monte Produce has agreed to acquire the vegetable and tomato businesses for $285 million, while Pacific Coast Producers is set to purchase the shelf-stable fruit operations.

Greg Longstreet, CEO of Del Monte Foods, stated: “This outcome represents a successful result in our sale process and demonstrates the enduring value of Del Monte Foods’ brands and operations… These transactions will create an opportunity for our beloved brands and businesses to thrive”.

The deal is expected to close in the first quarter of 2026, subject to approval by the US Bankruptcy Court for the District of New Jersey.

Source: B&G Foods / Del Monte Foods / Food Dive / The Shelby Report