- B&G Foods, the rumored lead buyer for General Mills' Green Giant brand, has officially said it will buy it for $765 million. This also includes General Mills' Le Sueur vegetable business.
- Under license from B&G, General Mills will manage the European Green Giant business and additional export locations. Green Giant has about $550 million in yearly sales, which will make B&G a $1.4 billion firm.
- Pending regulatory approval, the deal should be official by the end of 2015.
The move doesn't come as a shock to the industry, considering talk of a sale floated in March.
General Mills' struggles are ones shared by all in the processed foods industry as consumers shift attention to products with simpler ingredients.
Frozen food is a weak spot for the industry. According to Nielsen data, on average, frozen food sales rose by less than 1% the last four years. With this sell-off, it's clear General Mills has enough to worry about (re: cereal) than to focus its attention on the brand.
In 2014, the company announced it would divide its organic and frozen food sectors, moving them to other areas of the company, though acquiring Annie's was not included in this.
The company said more details about the sale will come during its earnings results for Q1 fiscal 2016 on Sept. 22.