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B&G Foods Inc., Parsippany, N.J., has entered into an agreement to acquire Robert’s American Gourmet Food, LLC, Sea Cliff, N.Y., which does business as Pirate Brands, from VMG Partners, Driven Capital Management, founder Robert Ehrlich and certain other entities and individuals, for 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,” says David L. Wenner, president and CEO of B&G Foods. “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. VMG Partners and Driven Capital Management, under the leadership of Mike Repole, have done an outstanding job with Pirate Brands over the past five years, building upon the fun, innovative, all-natural brand originated by Robert Ehrlich in 1987. We look forward to continuing to bring consumers the great-tasting, all-natural snack foods they have come to love and expect from Pirate Brands.”
Pirate Brands’ snack brands include Pirate’s Booty, Smart Puffs and Original Tings. B&G Foods projects that following the acquisition, Pirate Brands will generate net sales of $80 million to $90 million and adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $18 million to $20 million on an annualized basis after the business is fully integrated into B&G Foods. The company expects the acquisition to close this month, subject to regulatory approval and the satisfaction of customary closing conditions.