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B&G Foods Inc. Message Board

  • mgoose45 mgoose45 Oct 7, 2012 6:32 PM Flag

    Unilever selling Skippy Peanut Butter

    You think B&G might be interested? Thoughts? Another mature brand.

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    • More likely that Smucker's will buy BGS. Neither one likely IMO. Fly under the food radar and pick up the crumbs that are falling off the table from the big guys. Good business model so far.

    • No way......$ 300 million price tag is way too big for BGS and this brand does not provide enough
      incremental margin

      By the way, BGS is presently trading below $ 30 and volume is weak, where are all those investors
      over the past few weeks begging for a lower entry into the BGS story ????

      Sentiment: Hold

      • 2 Replies to jackmaster20
      • Bloomberg said on Nov 9th that 3 sources have noted that Conagra & BGS
        might be interested in Skippy. No chance that BGS is a sincere party in
        this possible deal.

        Estimates now say Skippy could bring $ 500 million...too big for Wenner
        but the right size for Conagra who is on a buying spy of late & seems to
        need the scale vs KFRT and/or GIS.

        The real reason Wenner is not interested in the stiff competition & low margins
        found in the mid level quality peanut butter market. the cost and effort from
        an advertising and marketing standpoint also makes Skippy not worth the price
        for BGS investors.

        I think Wenner talked and looked closely at the Skippy deal, for no other reason
        than to see what competitors are being offered. If Pinnicle Foods did not want
        Skippy, this tells investors that there is no financial reason for BGS to buy.

        Wenner has said many times before that acquisition is the only way to grow
        a food company & the only way to grow a profitable food firm is by adding
        high margin brands...not high volume brands. Big difference.

        Sentiment: Hold

      • Pull back, pure and simple. It's been on a tear lately. Will probably rise into or post earnings.

48.15+0.05(+0.10%)Oct 25 4:02 PMEDT