B&G Foods Inc. extended its plan to divest itself of products with low margins and cash flow by selling the Le Sueur brand of premium sweet peas, green beans and carrots to McCall Farms Inc. Financial terms were not disclosed.
“Our sale of the Le Sueur brand represents continued progress in our ongoing efforts to reshape our portfolio, sharpen focus on our core brands and reduce long-term debt,” said Casey Keller, president and chief executive officer of B&G Foods. “The Le Sueur brand has performed very well for us over the years, and we believe it will continue to thrive under the ownership of McCall Farms.”
B&G Foods intends to use the proceeds from the sale for general corporate purposes, including the repayment of long-term debt and the purchase of assets useful in B&G Foods’ business, and to pay taxes, fees and expenses related to the sale.
The Le Sueur deal is the latest vegetable brand divestiture for B&G. In the last few years, the company has sold two of its tomato lines to a private equity company and divested its iconic Green Giant U.S. canned vegetable business to Seneca Foods.
B&G has been selling assets to focus its business and reduce its long-term debt. At the time of the sale of Green Giant, Keller said canned vegetables were a mature category with high working capital needs.
The sale does not include the Le Sieur brand in Canada. Barclays Capital Inc. and Deutsche Bank Securities Inc. acted as financial advisers to B&G Foods.
McCall Farms was started in 1954 as a family business in Effingham, S.C. Its brands include Glory Foods, Peanut Patch boiled peanuts, and Bruce’s Yams.
