General Mills has reached a definitive agreement to sell its Green Giant and Le Sueur vegetable businesses to B&G Foods for approximately US$765 million in cash, subject to an inventory adjustment at closing.
General Mills will continue to operate the Green Giant business in Europe and select other export markets under license from B&G Foods.
The Green Giant and Le Sueur businesses included in the proposed transaction, comprised the US, Canada, and select other markets, generated annual net sales of approximately US$585 million in fiscal 2015.
The transaction, which is subject to regulatory approval, is expected to close by the end of the calendar year. General Mills expects to use the net proceeds for share repurchases and debt reduction.
