B&G Foods Acquires Rickland Orchards
09 Oct 2013 --- B&G Foods, Inc. announced that it has acquired Rickland Orchards LLC from Natural Instincts LLC.
“We are delighted to welcome Rickland Orchards, Jason Cohen and Michael Sands to the B&G Foods family,” stated David L. Wenner, President and Chief Executive Officer of B&G Foods. “Jason and Michael have a strong history of developing, marketing and building brands, especially in the club channel. Under their leadership the Rickland Orchards® brand, which was launched in March 2012, has already achieved annualized net sales exceeding $50.0 million, with a strong presence across the club, retail, mass and convenience channels. Combining the talents of Jason and Michael with B&G Foods’ existing strong management team and sales force will benefit both Rickland Orchards and B&G Foods’ base business.”
The acquisition of Rickland Orchards, whose products include Greek yogurt coated granola bars and bites, is the fourth acquisition by B&G Foods since October 2012. Rickland Orchards’ products blend a strained Greek yogurt coating with roasted nuts, granola and fruit to create convenient, great-tasting and protein-packed snacks, and can be found in over 15,000 locations in North America.
Jason Cohen, the founder and Chief Executive Officer of Rickland Orchards, is joining B&G Foods as Executive Vice President of Club Channel. In this capacity, Mr. Cohen will be responsible for sales of B&G Foods’ entire portfolio of brands into the club channel. Michael Sands, Rickland Orchards’ Chief Operating Officer, is joining B&G Foods as Vice President of Product Innovation.
“Michael and I look forward to joining B&G Foods,” stated Jason Cohen. “We believe that our experience in the club channel and in developing on trend, innovative products combined with B&G Foods’ seasoned management team, sales force and impressive portfolio of brands will result in continued growth for Rickland Orchards and incremental sales for B&G Foods’ existing brands.”
The purchase price paid for Rickland Orchards was approximately $57.5 million, subject to post-closing adjustments, of which approximately $37.4 million was paid in cash and approximately $20.1 million was paid in shares of common stock of B&G Foods. Natural Instincts will also be entitled to earn-out payments if certain performance goals are achieved. B&G Foods paid the cash portion of the purchase price for the acquisition, which closed, from borrowings under B&G Foods’ revolving credit facility.
Houlihan Lokey Capital, Inc. served as the investment banking advisor to Natural Instincts LLC.
