PARSIPPANY, N.J. — B&G Foods has acquired Robert’s American Gourmet Food, doing business as Pirate Brands — an all-natural snack foods category — from VMG Partners, Driven Capital Management, founder Robert Ehrlich and other entities and individuals.
B&G will pay approximately $195 million in cash.
“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 L. Wenner, president and CEO of B&G Foods.
For the past five years VMG Partners and Driven Capital Management, under the leadership of Mike Repole, have built upon the innovative, all-natural brand originated by Robert Ehrlich in 1987.
Pirate Brands offers baked, all-natural, trans fat- and gluten-free snacks under the Pirate’s Booty, Smart Puffs and Original Tings banners. 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.
B&G Foods intends to fund the acquisition with the remaining net proceeds of its recently completed senior notes offering and additional revolving credit borrowings under its credit agreement. The company expects the acquisition to close in July, subject to regulatory approval and the satisfaction of customary closing conditions.