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Diving Briefs:
- B & G Foods sold the Le Sueur brand According to Friday’s press release, carrots of premium sweet peas, green beans and McCall Farms are not disclosed.
- B & G is trying to use the profits of sales for general company purposes. This includes debt payments and costs related to “useful assets” purchases and taxes, fees and sales.
- Le Sueur transactions display the sale of the latest vegetable brands of B & G. In the last few years, one -time serial acquisition We sold two tomato lines Selling to private equity company That green giant US canned vegetable business To Seneca Foods.
Dive Insights:
B & G did not provide details of the sale of Le Sueur, but you can get insight according to the sale of Green Giant in late 2023.
At that time, B & G said canned vegetables It was a mature category with high demand for driving capital. The New Jersey company said it should increase debt on finance for seasonal inventory, which is packaged and held for one year. Le Sueur is more likely to have a lot of challenges such as the same challenge and is much smaller in terms of profit than Green Giant.
“Sales of the LE SUEUR brand shows continuous progress in reconstructing the portfolio, focusing on core brands, and continuous progress in continuous efforts to reduce long -term debt.” The Le Sueur brand has been very well performed for many years and will continue to flourish under the ownership of McCall Farms. “
Two years ago, B & G says that in frozen and canned vegetable spaces, Keller said, “evaluating the sale of some or all brands.”
Food manufacturers have prioritized the sale of brands that have low margin and cash flows, have high driving capital demands, or that they do not meet the core functions and business units of B & G.
