B&G Foods wins $110M Del Monte broth brands in court-backed deal

B&G Foods has secured court approval for its $110 million purchase of Del Monte Foods' broth and stock division. The deal, finalised by a US bankruptcy court on Friday, includes the College Inn and Kitchen Basics brands. Shares of the company climbed 3.84% to $5.14 following the announcement.

The acquisition marks a strategic move for B&G Foods, which plans to integrate the newly acquired brands into its core shelf-stable food range. The company's market value currently sits between $347 million and $411 million, with its stock surging 22.15% over the past 30 days—largely driven by investor confidence in this deal.

Despite recent challenges, including a 9% drop in first-quarter sales and a 4% decline in the second quarter, B&G Foods has faced additional pressure from high debt levels and rising costs for raw materials and energy. Efforts to cut expenses and sell off non-core brands have helped stabilise its financial position.

The transaction is set to complete in the first quarter of 2026. Meanwhile, the company has also announced that its 2025 dividends of $0.76 per share will be treated as a return of capital rather than taxable income.

The takeover of College Inn and Kitchen Basics will expand B&G Foods' product offerings in the broth and stock sector. With the deal expected to close early next year, the company aims to reinforce its position in the shelf-stable food market. The dividend classification change may also provide tax benefits for shareholders.