B&G Foods Sells Pirate’s Booty To Hershey For $420 Million
Peter Sayles |
Our call was perfect.
On August 28, we told you B&G Foods would likely have to sell off their top brands to help pay off debt and cover their dividend payments.
They did just that last week (September 12) selling Pirates Brands to Hershey for $420 million.
B&G’s Pirates Brands include Pirate’sBooty, SmartPuffs, and OriginalTings.
B&G originally bought PiratesBrands for $195 million in 2013. Selling at $420 million gives it a return on investment of 115% in 5 years – a 16.6% annual return.
B&G’s stock rose as much as 3.4% on the news. It closed up 2% the next day (on September 13).
But investors realized this wasn’t enough. And closed back below its trading price before the announcement.
It still has a tough road ahead.