B&G Foods Sells Le Sueur Brand to McCall Farms
B&G Foods recently announced the sale of its Le Sueur brand of premium sweet peas, green beans, and carrots to McCall Farms for an undisclosed amount. This divestiture is part of B&G’s strategy to reshape its portfolio, focus on core brands, and reduce long-term debt. The company plans to use the proceeds from the sale for general corporate purposes, including paying down debt, acquiring assets beneficial to its business, and covering taxes, fees, and expenses related to the transaction.
The sale of the Le Sueur brand is the latest in a series of vegetable brand divestitures by B&G. In recent years, the company has sold two tomato lines to a private equity firm and divested its Green Giant U.S. canned vegetable business to Seneca Foods. This strategic realignment reflects B&G’s commitment to optimizing its brand portfolio and streamlining its operations.
Following the sale of Green Giant in late 2023, B&G highlighted the challenges associated with canned vegetable brands, citing high working capital needs and the necessity of increasing debt to finance seasonal inventory. While specifics behind the Le Sueur sale were not disclosed, it is likely that the brand faced similar challenges due to its smaller revenue size compared to Green Giant.
Casey Keller, President, and CEO of B&G Foods, expressed confidence in the future success of the Le Sueur brand under McCall Farms’ ownership. Keller emphasized the company’s ongoing efforts to evaluate and divest brands that do not align with its core capabilities and business unit structure. By divesting brands with lower margins and higher working capital needs, B&G aims to strengthen its financial position and focus on driving growth in its core business areas.
Overall, the sale of the Le Sueur brand represents a strategic move by B&G Foods to optimize its brand portfolio, reduce debt, and position itself for long-term success in the competitive food industry landscape. As the company continues to refine its business strategy and focus on core brands, investors and industry observers will be watching closely to see how these strategic initiatives translate into sustained growth and profitability.
