US producer B&G Meals has offered its Le Sueur model, identified for “premium” candy peas, inexperienced beans, and carrots, to McCall Farms.
Monetary phrases of the transaction weren’t disclosed.
The corporate will utilise the proceeds to repay “long-term debt”, in keeping with an announcement on 1 August.
It’s going to additionally use the proceeds to purchase property for its enterprise, and canopy taxes, charges, and bills related to the sale.
The transaction excludes the Le Sueur model in Canada.
Casey Keller, president and CEO of B&G Meals, stated the transfer will “sharpen concentrate on our core manufacturers”, including Le Sueur model has “carried out very nicely” underneath its possession.
The sale follows B&G Meals’ divestiture in May of its Don Pepino and Sclafani manufacturers, providing pizza, pasta sauces, and canned tomatoes, to Violet Meals, a portfolio firm of Aphora Fairness Companions.
The deal included B&G Meals’ manufacturing facility in Williamstown, New Jersey, the place the manufacturers’ merchandise are produced.
Headquartered in Parsippany, New Jersey, B&G Meals manufactures, sells, and distributes over 50 manufacturers throughout the US, Canada, and Puerto Rico.
It has a various vary of manufacturers together with B&G, B&M, Bear Creek, Cream of Wheat, Crisco, Sprint, Inexperienced Large, and Victoria.
The model gross sales come after B&G Meals recorded $320m in impairment charges in 2024, described as “associated to intangible trademark property” for its Inexperienced Large, Victoria, Static Guard, and McCann’s manufacturers.
These prices contributed to the corporate’s deeper monetary losses final yr.
In its fiscal 2025 outlook, B&G Meals initially projected internet gross sales of $1.89bn to $1.95bn, with adjusted EBITDA of $290m to $300m and adjusted diluted earnings per share of $0.65 to $0.75.
Nevertheless, in Could, the corporate revised its guidance downward, forecasting internet gross sales of $1.86bn to $1.91bn, adjusted EBITDA of $280m to $290m, and adjusted diluted earnings per share of $0.55 to $0.65.
This adopted a first-quarter report exhibiting a ten.5% decline in whole internet gross sales to $425.4m.
Within the Frozen & Vegetable section, which incorporates Le Sueur, internet gross sales fell 11.2% year-on-year.
“B&G Meals offloads Le Sueur model to McCall Farms” was initially created and printed by Just Food, a GlobalData owned model.
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