Is B&G (BGS) Eyeing Mazola Cooking Oil Maker ACH Food?
Zacks Investment Research | Sep 13, 2016 09:50PM ET
Snack food company Parsippany, NJ-based B&G Foods Inc (NYSE:BGS) plans to acquire Mazola cooking oil maker ACH Food Companies Inc. from food supplier and retailer Associated British Foods (LON:ABF) Plc, as per media reports.
Although both the parties refused to comment, Associated British Foods has appointed investment bank Moelis & Co for the transaction which is expected to value ACH Food in between $300 million and $400 million, if media reports are to be believed.
London-based Associated British Foods recently announced that the weaker pound post Brexit should bolster its results in fiscal 2016. However, Associated British Foods warned that the currency fluctuation will hurt profit margins in fiscal 2017. Its pension plan will fall into the negative territory, partly due to Brexit-induced currency pressure.
On the other hand, ACH Food took over the Mazola business, along with Argo and Kingsford's corn starch, Karo and Golden Griddle syrups, Henri's salad dressings, and a number of related Canadian Brands, from Unilever (LON:ULVR) Plc in 2002 for $360 million in cash.
B&G Foods and its subsidiaries manufacture, sell and distribute a diversified portfolio of high-quality, shelf-stable foodstuff. The company acquired Green Giant frozen foods and Le Sueur canned vegetable brands for about $765 million in 2015 and thereby expanded its distribution network and forayed into the frozen food space.
B&G FOODS CL-A Price
Zacks Investment Research
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.