B&G Foods has finalized a strategic agreement to sell its Green Giant and Le Sieur brands, encompassing frozen and shelf-stable vegetable product lines in Canada, to Nortera Foods.
While financial terms of this deal remain undisclosed, it marks a significant move in the food manufacturing landscape.
Nortera has served as the exclusive manufacturer of these brands for B&G Foods in Canada over the past three decades.
Hugo Boisvert, CEO of Nortera, stated: “With decades of expertise as the trusted manufacturing partner behind the Green Giant and Le Sieur brands in Canada, this acquisition ensures that these iconic brands, long produced in Canada, are now also locally owned.”
Production will continue at Nortera’s facilities located in Tecumseh, Ontario; Lethbridge, Alberta; and Saint-Denis-sur-Richelieu, Quebec.
Nortera emphasized that this acquisition will enhance its existing portfolio, which includes brands like Arctic Gardens and Del Monte.
In a separate statement, B&G Foods confirmed that it will allocate the sale proceeds towards reducing long-term debt.
The transaction is expected to be finalized in either the fourth quarter or the first quarter of next year, pending regulatory approval in Canada.
Additionally, B&G Foods has been divesting the Green Giant brand in various markets, having sold the US shelf-stable vegetable line to Seneca Foods in November 2023, and the Le Sueur US shelf-stable vegetable option to McCall Farms in August.
The company continues to explore sale options for its Green Giant US frozen vegetable product line.
Casey Keller, the president and CEO of B&G Foods, remarked: “Our decision to sell the Green Giant and Le Sieur brands in Canada is another milestone in our ongoing effort to divest brands and product lines that are non-core to B&G Foods’ long-term strategy to sharpen our focus and reduce long-term debt. Green Giant is a well-recognized and trusted brand in Canada.”
In May, the company sold its Don Pepino and Sclafani sauces and canned tomatoes brands to Violet Foods, a portfolio company of Aphora Equity Partners.
Due to these two divestitures, the company has revised its full-year group sales, EBITDA, and EPS guidance for the second time in fiscal 2025.
Sales are now projected in the range of $1.83-1.88bn, compared to the previously adjusted outlook of $1.86-1.91bn provided in May, which was initially estimated at $1.89-1.95bn.
Adjusted EBITDA is now expected at $273-283m, a decrease from the original forecast of $290-300m.
Regarding adjusted diluted EPS, the new projection is $0.50-60, down from $0.55-0.65 and $0.65-0.75 previously stated.
“We expect additional divestitures in the future to further focus the portfolio and reduce leverage,” CEO Keller noted during an August analyst discussion, highlighting a 4.2% decline in “base” business sales.
Nortera operates 13 plants across Canada and the US, processing and marketing over 400,000 tonnes of vegetables annually. The company employs over 3,000 individuals across the region.
Nortera has also announced a C$28m ($20m) investment to expand capacity at its Saint-Denis-sur-Richelieu facility, which focuses on canning vegetables and legumes and producing soups and sauces.
This upgrade will increase the site’s output from six million to 10.6 million case-equivalents.
As part of this expansion, Nortera plans to close its Saint-Césaire plant by late January 2026, resulting in approximately 100 job losses. However, it will create 70 permanent positions at the expanded facility.
