Food and Beverage Business
Finance

Seneca Foods acquires Green Giant shelf-stable products from B&G Foods

Seneca Foods acquires Green Giant shelf-stable products from B&G Foods B&G Foods Food and Beverage Business

B&G Foods has announced the sale of the ambient element of its Green Giant vegetable product line in the US to Seneca Foods, a supplier of branded and private-label packaged fruit and vegetables.

Seneca has been the long-time co-manufacturer for shelf-stable Green Giant products in the US. The financial details of the deal were not disclosed but B&G said it will retain ownership of the Green Giant trademarks and license the Green Giant brand name to Seneca. The sale does not include its Green Giant frozen, Green Giant Canada or Le Sueur business.

CEO Casey Keller said, “Our decision to sell the US shelf-stable product line of the Green Giant brand is part of our ongoing effort to divest product lines that are non-core to B&G Foods’ long-term strategy and reduce long-term debt.”

B&G is looking to use the net proceeds from the sale for the repayment of long-term debt, reaffirming their commitment to their long-term strategy. Paul Palmby, CEO of Seneca Foods, added, “We are excited to add the iconic Green Giant brand and shelf-stable products to our portfolio of canned vegetable offerings.”

In Seneca’s most recent results, they revealed net sales of $298.7m, versus $265.2m year on year. EBIT was up from $6.7m 12 months earlier to $30.2m.

B&G recorded net sales of $502.7m for the third quarter, 4.9% down year-on-year. Net losses widened from $59.6m a year ago to $82.7m, while adjusted EBITDA was marginally up at $80.4m. Their latest guidance for 2023 net sales is in the range of $2.05bn to $2.07bn, and they did not announce an up-to-date debt figure.

B&G’s restructuring into four business units and recent sales reflect the company’s commitment to reducing long-term debt and focusing on core product lines. “We believe that Seneca Foods, the long-time, primary co-manufacturer for the Green Giant US shelf-stable product line, is the right owner for the US shelf-stable product line,” said CEO Casey Keller.