General Mills, Inc. has announced that it will be selling its Green Giant and Le Sueur vegetable businesses to B&G Foods, Inc. for approximately $765 million in cash, according to a press release issued by General Mills.
The sale is in line with General Mills' strategic priority to reshape its business portfolio for growth.
General Mills plans to focus more brands, categories, and geographic markets that have the greatest future for growth, according to General Mill's press release.
The company plans to allocate more of its resources to these brands and lessen the brands that are struggling.
The Denver Post adds that the views of U.S. citizens with regards to what food is healthy have already shifted in recent years.
A lot of shoppers have begun avoiding frozen and canned foods.
General Mills and its peers are trying to restructure its business portfolio to meet the demands of the changing eating habits of U.S. citizens, according to The Denver Post.
The businesses of Green Giant and Le Sueur, that will be included in the proposed transaction, are the U.S., Canada and other select markets, according to General Mill's press release.
These businesses generated an annual sale of approximately $585 million in fiscal 2015.
"We are thrilled to welcome Green Giant and Le Sueur to the B&G Foods family of brands," Robert C. Cantwell, president and CEO of B&G Foods, said in a press release issued by B&G Foods.
"For over 100 years, Green Giant and Le Sueur have been providing consumers with great-tasting, nutritious vegetables 'picked at the peak of perfection,'" he added. "We look forward to building on that rich history by offering new and innovative products that will respond to the needs of today's health-conscious consumer."
General Mills anticipate that the transaction will be dilutive to fiscal 2016 earnings per share in the range of about 5 to 7 cents, according to the company's press release.
These exclude the transaction costs and the one-time gain on the sale.
The transaction is expected to close by the end of the calendar year, according to General Mill's press release.
