B&G Foods (NYSE:BGS) announced Thursday that it has entered into a definitive agreement to acquire the broth and stock business of Del Monte Foods Corporation II for approximately $110 million in cash.
The deal includes the iconic College Inn and Kitchen Basics brands, which B&G secured as the winning bidder in a competitive bankruptcy auction process.
The acquisition is a central component of CEO Casey Keller’s strategy to "sharpen the focus" of the B&G portfolio toward core, shelf-stable pantry staples with resilient cash flows.
The move follows B&G’s recent divestiture of its Green Giant and Le Sieur vegetable lines in Canada, with the proceeds from those sales helping to fund this acquisition.
B&G expects to realize approximately $15 million in net present value tax benefits from the asset purchase structure.
When accounting for these benefits, the effective purchase multiple drops to 4.8 times projected EBITDA.
The deal remains subject to the approval of the U.S. Bankruptcy Court for the District of New Jersey, with a hearing scheduled for January 28, 2026.
Del Monte Foods filed for Chapter 11 protection in July 2025 after struggling with a heavy debt load and shifting consumer preferences away from canned goods.
Other portions of Del Monte’s business are being sold to Fresh Del Monte Produce and Pacific Coast Producers.
If approved, B&G Foods expects the transaction to close by the end of the first quarter of 2026.
The company plans to fund the purchase using cash on hand and its existing revolving credit facility.