An ownership group led by private equity firm Huron Capital Partners has sold Victoria Fine Foods Holding Company and Victoria Fine Foods for roughly $70 million to B&G Foods.
The brand complements the existing B&G portfolio of brands including our Don Pepino pizza sauces, Sclafani crushed tomatoes and Emeril’s pasta sauces.
“Consistent with our acquisition strategy, we expect the acquisition to be immediately accretive to our earnings per share and free cash flow,” said Robert Cantwell, president and CEO of B&G, in a statement.
B&G funded the acquisition and related fees and expenses with cash on hand and additional revolving loans under its existing credit facility, according to the statement. After it fully integrates the Brooklyn, New York-based Victoria brand, it is expected to generate on an annualised basis net sales of approximately $41 million and adjusted EBITDA of approximately $9 million.
Huron committed $35 million through its $350 million The Huron Fund III in February of 2011 to the recapitalisation of Victoria Fine Foods, in collaboration with industry executives and management.
The private equity firm has raised over $1.1 billion in capital through four committed private equity funds and invested in over 120 lower middle-market companies using its “buy-and-build” investment model, which includes equity recapitalisations, family succession transactions, market-entry strategies, corporate carve-outs, and management buyouts.
“Huron Capital prefers complex situations where it can help companies reach their full potential by combining its operational approach, substantial capital base, and transaction experience with seasoned operating executives,” according to the statement.
Huron did not immediately return calls seeking additional insight into the disposition strategy.