Today, B&G Foods Inc announced completed acquisition of Pirate Brands from Robert's American Gourmet Food LLC. The deal was valued based on its previous offered price of US$195 million in cash that is subjected to adjustments. The said adjustments would be based on indebtedness, working capital and transaction expenses after the deal closed. Pirate Brands has been a leader in the all natural snack foods category. The company's delicious snacks included Pirate's Booty, Smart Puffs and Original Tings. B&G Foods expected the acquisition to be accretive to earnings of the company per share and free cash flow.
B&G Foods funded the purchase and would pay related fees and expenses with the remains of the net proceeds from its previously completed senior notes offering. The previous deal was valued at US$40 million of additional credit borrowings under the existing credit agreement. After the latest acquisition, the available borrowing capacity of the firm under the revolving credit facility would be valued at US$254.5 million.
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