B&G Foods is looking forward to a “transformational” year following the disposal of its last Green Giant assets.
As the New York-listed food group issued its fiscal 2025 results yesterday (3 March), CFO Bruce Wacha told analysts the company reaped $63.2m from the sale of its Green Giant frozen-vegetable brand in the US to Seneca Foods, a deal announced on Monday.
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B&G Foods also expects to bring in around $100m a year under a co-manufacturing arrangement simultaneously entered into with Seneca Foods for the same assets, along with a “modest” profit, Wacha added.
President and CEO Casey Keller said the company is “creating a stronger, focused, more profitable B&G Foods”.
“This is the largest piece in our portfolio transformation that should result in stronger focus, simplification, greater synergies, and higher margins across the core shelf-stable business lines,” Keller said.
“The Green Giant frozen business simply has not been the right fit for B&G Foods, with seasonal production, a different temperature state, geographic complexity and higher working capital intensity.”
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By GlobalDataB&G Foods had kicked off the divestiture of its Green Giant business in 2023 with the sale of the shelf-stable veg line in the US to Seneca. Last year, a deal for the brand’s Canadian assets in frozen and shelf-stable was entered into with Nortera Foods, a transaction that also included the Le Sieur frozen line-up.
B&G Foods had also let go of Le Sueur shelf-stable vegetable products in the US to McCall Farms in August. And earlier in the year, the company offloaded the Don Pepino and Sclafani sauces and canned tomatoes brands to Violet Foods.
On the other side of the ledger, B&G Foods acquired the broth and stocks business from Del Monte Foods in January.
Keller said yesterday the net result is that “fiscal year 26 is poised to be a transformational year with a more focused, higher margin and stable portfolio”.
As a result of the disposals, B&G Foods guided to a conservative outlook for sales and profits in the new year after incurring impairment charges related to the divestitures in the fourth quarter and full year of 2025.
A sales range of $1.66bn to $1.7bn was set, compared to last year’s $1.83bn, a result that was down 5.4%.
This week’s disposal of the Green Giant frozen assets in the US will remove around $203m but about $80m will be brought in through the co-packing arrangement, Keller said.
The divestiture of the Green Giant Canada assets – set to be completed by the end of March – and the acquisition of the Del Monte broth business are not included in the guidance, which calls for adjusted EBITDA of $265-275m.
That metric dropped 7.9% last year to $272.2m, while adjusted diluted EPS fell 27.1% to $0.51. A range of $0.55 to $0.65 is forecast for 2026.
Discussing the net losses – $15.2m in quarter four and $43.3m for the year – Wacha said they were due to pre-tax non-cash impairment charges related to intangible assets and assets held for sale.
They included $34.8m related to “intangible trademark and customer relationship assets” for the Green Giant brand in the final quarter.
And over the year, the company recorded a pre-tax non-cash impairment charge for assets held for sale for the pending Green Giant Canada divestiture of $27.8m in the third quarter and an additional $0.7m in the last, Wacha added.
“Our 2026 guidance reflects what we know today and, for example, does not factor in significant changes in inflation, tariff policies, or the potential impact of escalation of the conflicts in eastern Europe, the Middle East, or Latin America could have on our results,” Wacha said.
