US manufacturer B&G Foods has sold its Le Sueur brand, known for “premium” sweet peas, green beans, and carrots, to McCall Farms.
Financial terms of the transaction were not disclosed.
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The company will utilise the proceeds to repay “long-term debt”, according to a statement on 1 August.
It will also use the proceeds to buy assets for its business, and cover taxes, fees, and expenses associated with the sale.
The transaction excludes the Le Sueur brand in Canada.
Casey Keller, president and CEO of B&G Foods, said the move will “sharpen focus on our core brands”, adding Le Sueur brand has “performed very well” under its ownership.
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By GlobalDataThe sale follows B&G Foods’ divestiture in May of its Don Pepino and Sclafani brands, offering pizza, pasta sauces, and canned tomatoes, to Violet Foods, a portfolio company of Aphora Equity Partners.
The deal included B&G Foods’ manufacturing facility in Williamstown, New Jersey, where the brands’ products are produced.
B&G Foods recorded $320m in impairment charges in 2024, described as “related to intangible trademark assets” for its Green Giant, Victoria, Static Guard, and McCann’s brands.
These charges contributed to the company’s deeper financial losses last year.
In its fiscal 2025 outlook, B&G Foods initially projected net sales of $1.89bn to $1.95bn, with adjusted EBITDA of $290m to $300m and adjusted diluted earnings per share of $0.65 to $0.75.
However, in May, the company revised its guidance downward, forecasting net sales of $1.86bn to $1.91bn, adjusted EBITDA of $280m to $290m, and adjusted diluted earnings per share of $0.55 to $0.65.
This followed a first-quarter report showing a 10.5% decline in total net sales to $425.4m.
In the Frozen & Vegetable segment, which included Le Sueur, net sales fell 11.2% year-on-year.
