B&G Foods Sells Green Giant Frozen Unit for $63.2M, Eyes Broth Brand Acquisition
B&G Foods sold its Green Giant U.S. Frozen business to Seneca Foods for $63.2 million and entered a co-pack agreement to produce certain frozen products. It will use the proceeds to acquire College Inn and Kitchen Basics broth and stock brands from Del Monte Foods, expected to close by end-March.
1. Portfolio Reshaping and Frozen Business Sale
B&G Foods completed the divestiture of its Green Giant U.S. Frozen business to Seneca Foods, citing seasonal production challenges, geographic complexity and higher working capital intensity. The sale included the Yuma, Arizona manufacturing plant but excluded the Irapuato, Mexico facility, with B&G Foods entering a co-pack agreement to continue producing select frozen products for Seneca.
2. Funding Broth and Stock Acquisition
CFO Bruce Wacha reported $63.2 million in net proceeds from the U.S. Frozen sale, which will help fund the planned acquisition of College Inn and Kitchen Basics broth and stock brands from Del Monte Foods. The transaction has secured bankruptcy court approval and is slated to close by the end of March, pending customary conditions and linked Del Monte divestitures.
3. Broth Category Growth and Margins
Management highlighted broth and stock as an attractive category that delivered low- to mid-single-digit growth over the past year and offers favorable margins. The company expects this segment to capitalize on ongoing meal preparation trends similar to those driving spices and seasonings.
4. Canadian Divestiture Update
B&G Foods reaffirmed its previously announced sale of the Canadian Green Giant canned and frozen vegetable business, which remains under regulatory review in Canada. The company anticipates closing that transaction in fiscal 2026’s second quarter, subject to customary closing conditions.