B&G Foods has agreed to acquire Del Monte Foods’ broth and stock business, including the College Inn and Kitchen Basics brands, for about $110 million in cash following a competitive bankruptcy auction.
The transaction emerged from Del Monte Foods Corporation II’s Chapter 11 bankruptcy proceedings, where B&G Foods prevailed as the winning bidder for the broth portfolio.
The acquisition is subject to bankruptcy court approval and other customary closing conditions, with completion expected during the first quarter of 2026.
“The College Inn and Kitchen Basics brands complement our existing portfolio of brands,” said Casey Keller, president and CEO of B&G Foods. “College Inn and Kitchen Basics are pantry staples for consumers seeking to prepare high-quality, innovative and versatile meals at home.
“This acquisition is consistent with our longstanding acquisition strategy of targeting well-established brands with defensible market positions and strong cash flow at reasonable purchase price multiples.”
B&G Foods expects the acquired brands to generate annual net sales of about $110 million to $120 million, adjusted earnings before interest, taxes, depreciation and amortization of $18 million to $22 million, and adjusted diluted earnings per share of $0.08 to $0.12.
The company anticipates the acquisition will be immediately accretive to earnings per share, adjusted EBITDA and free cash flow upon closing.
The purchase price of about $110 million is subject to an inventory adjustment at closing. B&G Foods will also assume certain liabilities as part of the transaction.
The deal must close simultaneously with two other unrelated bankruptcy sales by Del Monte Foods, though those transactions do not involve B&G Foods or the broth business.
TD Cowen analyst Robert Moskow called the College Inn and Kitchen Basics brands a “good strategic fit” for B&G Foods, noting the company secured them at an attractive price. However, Moskow maintained concerns about B&G’s financial leverage and growth headwinds, keeping a Sell rating on the stock while raising the price target to $3.50 from $3.00.
“After a long cycle of asset sales, the acquisition represents somewhat of a return to the company’s long-term strategy of acquiring ‘orphan’ brands with high brand recognition in stable categories,” Moskow wrote. “That said, management will have some work to do to fully stabilise College Inn.”
Company performance context
B&G Foods faces operational challenges heading into the acquisition. The company carries financial leverage of 6.9 times EBITDA and has experienced a negative 4 percent sales compound annual growth rate over the past two years. Recent financial metrics show revenue of $1.84 billion with 3-year revenue growth of negative 7.9 percent.
The company’s balance sheet reflects a debt-to-equity ratio of 4.4 and an interest coverage ratio of 1.22, which analysts consider low and potentially risky for meeting debt obligations. Net margin stands at negative 13.61 percent, indicating ongoing profitability challenges.
Despite these headwinds, B&G Foods recently beat third-quarter 2025 earnings expectations with earnings per share of $0.15 versus forecasts of $0.11. The company also slightly exceeded revenue forecasts at $439.3 million against expected $438 million.
Del Monte asset disposition
The broth brand sale is part of a broader breakup of Del Monte Foods through its bankruptcy process. Fresh Del Monte is acquiring the bulk of Del Monte Foods’ shelf-stable vegetable and tomato product operations, while Pacific Coast Producers, a California agriculture cooperative, is purchasing the shelf-stable fruit business assets excluding production sites.
[RELATED: Fresh Del Monte Named Winning Bidder To Acquire Del Monte Foods Assets]