B&G Foods to Close Broth Brands Deal After $63.2M Green Giant Sale
B&G Foods received $63.2 million from its Green Giant U.S. Frozen divestiture and expects to close the Del Monte broth and stock brands acquisition before end of March. Fourth-quarter net sales of $539.6 million generated $84.7 million in adjusted EBITDA despite a $15.2 million net loss and tariff headwinds.
1. Portfolio Reshaping
B&G Foods sold its Green Giant U.S. Frozen business to Seneca Foods for $63.2 million while exiting its Canadian Green Giant canned and frozen arm pending regulatory approval. The company expects to close its acquisition of College Inn and Kitchen Basics broth and stock brands from Del Monte by end of March, funding the deal with divestiture proceeds.
2. Co-Pack Agreement Details
The Green Giant U.S. Frozen sale includes a co-pack agreement where B&G Foods will produce certain frozen products for Seneca in Mexico and Arizona. This arrangement is expected to generate a $100 million annual net sales run-rate, with approximately $80 million recognized in fiscal 2026 and structured on a cost-plus basis to ensure profitability.
3. Q4 Financial Performance
In fiscal fourth quarter, net sales declined 2.2% to $539.6 million, resulting in a $15.2 million net loss, offset by $84.7 million in adjusted EBITDA (15.7% margin). Tariffs reduced gross profit by $4.4 million in the period, while base business sales rose 0.8% driven by pricing and mix improvements.
4. Fiscal 2026 Outlook and Leverage
Management forecasted net sales of $1.655–$1.695 billion, adjusted EBITDA of $265–$275 million (16–16.5% margin), and adjusted EPS of $0.55–$0.65 for fiscal 2026. The company aims to reduce net debt from $1.912 billion to around 6.0x covenant-adjusted EBITDA by mid-year, focusing on leverage reduction.