B&G Foods of Parsippany on Friday said it will sell its Back to Nature brand to Barilla America.
The Italian pasta maker hopes the acquisition will grow its U.S. bakery market.
“The acquisition of Back to Nature is consistent with Barilla’s long-term strategy to build a strong multibrand bakery platform in the United States,” the group said in a statement.
Back to Nature features a portfolio of plant-based, non-GMO products that compete in the U.S. cookies, crackers, granola and nuts and trail mix categories.
“Our decision to sell Back to Nature is part of a broader effort at B&G Foods to focus our portfolio on businesses that are core to our long-term strategy as we transition to a business unit structure,” Casey Keller, CEO and president of B&G Foods said. “The divestiture will also allow us to reduce long-term debt, while providing Barilla America with a great brand.”
The deal is expected to close in the first quarter of 2023 and B&G Foods intends to use the net proceeds from the sale for the repayment of long-term debt.
The terms of the transaction were not disclosed.
