ABF in Talks to Sell Cooking Oils and Seasoning Business to B&G Foods
14 Sep 2016 --- Associated British Foods is in negotiations to sell ACH Food Companies, one of the biggest consumer oil manufacturers in the US, to the US snacks foods company B&G Foods, according to a report.
The deal would value ACH Food Companies at between $300m and $400m, according to the report from Reuters, which says that ABF has hired Moelis & Co, the investment bank, to handle the sale.
ACH makes cooking oils, spices and seasonings, baking ingredients and foodservice brands in the US, Canada, Puerto Rico and Mexico.
Its leading brands are Mazola, the corn oil brand sold in the US and Canada, and Capullo, the canola oil brand sold in Mexico.
Its baking brands include Fleischmann's yeast and Argo corn starch.
By snapping up ACH, B&G would add to its portfolio of products sold in grocery stores in the US, which includes Vermont Maid syrups.
ACH purchased Mazola, along with a number of other brands, from Unilever in 2002 from $360m.
Last year, B&G paid $765m to buy Green Giant and Le Sueur canned vegetables from General Mills.
Earlier this week, UK headquartered ABF signaled a turnaround in fortunes of its sugar business after years of falling prices, saying operating profits in 2016 will be higher than in 2015.
ABF, which owns sugar production, an agriculture business, a grocery unit and retailer Primark, said operating profits across the group were ahead of expectations in the second half of the year, bolstered by a weakening of the pound since the EU referendum.
