B&G Foods To Acquire ACH Food's Spice Business For $365 Million

B&G Foods Inc. has announced an agreement to acquire ACH Food Companies Inc.'s spice business for about $365 million in cash. The brands involved include Spice Islands, Tone's and Durkee, as well as the Weber brand of sauces and seasonings, which are sold under license. B&G will also get a manufacturing facility in Ankeny, Ia. B&G expects the deal to close during the fourth quarter of 2016, and projects that the acquired business will generate net sales in the range of $220 million to $225 million on an annual basis starting in 2017. Adjusted earnings per share are expected to be in the range of 26 cents to 28 cents. And B&G expects $83 million in tax benefits. B&G shares are inactive in premarket trading, but up 34.4% for 2016 so far. The S&P 500 Index is up 4.7% for the year to date.