US manufacturer B&G Foods has sold its Don Pepino and Sclafani sauces and canned tomatoes brands to investor-linked Violet Foods.
Violet Foods is a newly formed portfolio company of Amphora Equity Partners, which invests in the North American packaged food and beverage sector.
The deal includes B&G Foods’ manufacturing facility in Williamstown, New Jersey, where it produces the branded products sold, according to a statement.
The Don Pepino brand includes pizza and pasta sauces and was created by the Sclafani family in 1950. Meanwhile, the Sclafani product line features canned tomatoes and sauces.
B&G Foods said the proceeds from the sale will be used to repay “long-term debt”.
Financial terms of the deal were not disclosed.
B&G Foods' president and CEO Casey Keller said: “The divestiture of the Don Pepino and Sclafani brands is consistent with our efforts to reshape our portfolio, focus on our core brands and reduce long-term debt.
“We believe that Amphora is the right owner to support the future growth of the Don Pepino and Sclafani brands.”
Just Food has reached out to Amphora Equity Partners for comment on the purchase as no commentary was provided by B&G Foods in its statement.
Headquartered in Parsippany, New Jersey, B&G Foods manufactures, sells and distributes its products across the US, Canada and Puerto Rico.
It has a diverse portfolio of over 50 brands, including B&G, B&M, Bear Creek, Cream of Wheat, Crisco, Dash, Green Giant and Victoria.
The brand sales come after B&G Foods recorded impairments across a group of four brands, charges that pushed the US manufacturer deeper into the red in 2024.
The company booked charges of $320m, which it said were “related to intangible trademark assets” for its Green Giant, Victoria, Static Guard and McCann’s brands.
At the time, B&G Foods projected its net sales for fiscal 2025 to range from $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 cut its guidance for FY25 net sales to $1.86-$1.91bn, with adjusted EBITDA anticipated at $280-$290m and adjusted diluted earnings per share at $0.55 to $0.65.
The reduction was announced in B&G Foods' first-quarter results, showing a 10.5% decline in total net sales to $425.4m.
Net sales within its Speciality foods segment, which includes Don Pepino and Sclafani, dropped 13.1% year-on-year to $134.4m.
