US manufacturer B&G Foods has sold its Le Sueur brand, known for “premium” sweet peas, green beans, and carrots, to McCall Farms. This strategic decision underscores the company’s commitment to focusing on its core food manufacturing brands.
While financial terms of the transaction remain undisclosed, the company intends to use the proceeds primarily to pay down long-term debt. Furthermore, B&G Foods plans to reinvest in business assets, covering taxes, fees, and expenses associated with the sale.
Importantly, this transaction excludes the Le Sueur brand from Canadian operations, indicating a targeted approach to brand management.
Casey Keller, president and CEO of B&G Foods, stated that this move will “sharpen focus on our core brands.” He emphasized that the Le Sueur brand has “performed very well” during its ownership.
Notably, this sale follows B&G Foods’ earlier divestiture in May of its Don Pepino and Sclafani brands, which focus on pizza, pasta sauces, and canned tomatoes. These brands were acquired by Violet Foods, a portfolio company of Aphora Equity Partners.
This deal also encompassed B&G Foods’ manufacturing facility located in Williamstown, New Jersey, where these products are produced. This step illustrates the company’s strategy in food manufacturing: to streamline operations while optimizing brand performance.
With headquarters in Parsippany, New Jersey, B&G Foods boasts a diverse portfolio of over 50 brands across the United States, Canada, and Puerto Rico. Their offerings include B&G, B&M, Bear Creek, Cream of Wheat, Crisco, Dash, Green Giant, and Victoria, showcasing their extensive reach in the food sector.
These recent brand sales come on the heels of B&G Foods reporting $320 million in impairment charges in 2024. These charges, related to intangible trademark assets, impacted brands like Green Giant and Victoria, contributing to the company’s increased financial losses last year.
Looking ahead, B&G Foods initially projected net sales for fiscal 2025 to be between $1.89 billion and $1.95 billion, with adjusted EBITDA ranging from $290 million to $300 million, and adjusted diluted earnings per share estimated at $0.65 to $0.75. However, in May, management revised its guidance downward, forecasting net sales between $1.86 billion and $1.91 billion, adjusted EBITDA of $280 million to $290 million, and adjusted diluted earnings per share of $0.55 to $0.65. This revision followed a first-quarter report that revealed a 10.5% decline in total net sales, totaling $425.4 million.
Within the Frozen & Vegetable segment, which includes the Le Sueur brand, net sales experienced an 11.2% year-on-year decrease, further spotlighting the challenges faced in the food manufacturing landscape.
