B&G Foods Completes Purchase Of Cream Of Wheat From Kraft Foods

Parsippany, NJ - B&G Foods, Inc. recently announced that effective February 25, 2007, subsidiaries of B&G Foods have completed the purchase of the Cream of Wheat and Cream of Rice brands from Kraft Foods Global, Inc., for the previously announced price of $200M in cash, subject to a post-closing adjustment for inventory at the closing date. B&G Foods used the proceeds of an additional $205M of term loan borrowings under its newly amended and restated credit facility to fund the acquisition and pay related transaction fees and expenses.

Introduced in 1893, Cream of Wheat is among the leading brands, and one of the most trusted and widely recognized brands, of hot cereals sold in the United States, claims the company. The Cream of Wheat and Cream of Rice brands generated net sales of approximately $60M in 2006. Cream of Wheat is available in original 10-minute, 2 ½ minute and one-minute versions, and also in instant packets of original and other flavors, including Apples 'n Cinnamon, Maple Brown Sugar and Strawberries 'n Cream. Cream of Wheat and Cream of Rice are distributed nationally in various retail and food service channels.

David L. Wenner, Chief Executive Officer of B&G Foods, stated, "This is a very exciting acquisition for B&G Foods. We have acquired the number two brand in the hot cereal category, a brand with great name recognition and over 100 years of heritage. Cream of Wheat and Cream of Rice fit B&G Foods' acquisition strategy perfectly, and are brands that our company can nurture and hopefully grow through focus and innovation. Significantly, this acquisition together with the related financing brings our company to approximately $1.0 billion in total capitalization, a remarkable milestone for B&G Foods."

SOURCE: B&G Foods, Inc.