Private equity firm American Capital has sold its portfolio company BCCK Holdings, parent to Specialty Brands of America, to B&G Foods, a manufacturer, marketer and distributor of branded shelf-stable foods.
American Capital and its affiliated funds received USD93 million in equity proceeds and realised a gain of USD60 million from the transaction, subject to post-closing adjustments.
Of the total proceeds, American Capital received USD54 million in equity proceeds, realising a gain of USD35 million from the transaction, subject to post-closing adjustments.
American Capital also recognised USD20 million of dividend income and additional realised gains over the life of its investment.
American Capital's compounded annual rate of return earned on its debt and equity securities over the life of its investment was 17 per cent, including interest, realised gains and fees. American Capital received 2.2 times its equity investment, and realised a compounded annual rate of return of 19 per cent over the life of its equity investment, including dividends and fees.
Evercore acted as exclusive financial advisor to American Capital on the transaction.
"We are delighted with the results of our investment in SBA and proud of how the Company excelled throughout our investment and solidified its leading position within the packaged foods industry," says Brian Graff, American Capital senior managing director. "Our investment in SBA is an excellent example of American Capital's One Stop Buyout strategy of investing in middle market companies with strong market positions and partnering with management teams to enhance performance, grow operations and create value."
