Knee-jerk reaction by market to ANY deal Wenner announces.
But I worry that maybe BGS has done a deal that may not meet
its past purchase criteria. $ 195 million with a higher EBITA multiple
cost is NOT what Wenner has done in the past.
Has Wenner pulled the trigger too fast on this transaction ? Did he
pay too much for 2 popcorn products ? This is not mature, category
leading brand. Its a niche brand in a very competitive sector.
Expensive purchases has killed other packaged shelf stable
firm in the past. BGS has been a real winner over the past 5 years
due to its cheap acquisitions.
I hope this deal is not going to hurt EBITA and DFCF.....these are
the 2 metrics that has allowed BGS to grow.
More uncomfortable about this deal than other purchases over the
past 4 years.......
Long BGS since Aug 2009