Published By : 04 Sep 2015 | Published By : QYRESEARCH
Le Sueur and Green Giant vegetable businesses of General Mill’s will soon be bought by B&G Foods Inc. for almost US$765 million. This amount will be paid in cash by the B&G group. While continuing its business of the Green Giant in Europe, General Mills will also be selecting various other markets for exporting its products after obtaining a license from the B&G Foods company.
This business deal indicates that General Mills is mainly focused towards shaping its growth portfolio and has prioritized its resources towards its key brands. The company is also channelizing its efforts towards its prominent regional markets which offers numerous opportunities for growth. The proposed transaction of Le Sueur and Green Giant comprises Canada, the U.S., and several other chosen markets which in the current fiscal contributed to the net sales worth US$585 million.
According to sources, this business deal is falls within the ambit of a strict regulatory structure, and this business deal has to get approval from regulatory authorities. Also, the transaction will get closed by the end of the current calendar year. There will be a certain inventory adjustment that will take place at the closing of this transaction at the end of this calendar year. General Mills anticipates that it would utilize its net proceeds in order to carry out debt reduction and also for the share repurchases.
It is also expected by the company that this business transaction will prove to be beneficial to the per share earnings of the 2016 fiscal and it will be ranging between 5 and 7 cents. This however doesn’t include the costs of transaction and neither does it involve the one-time profit that will be attained on the sale in question. General Mills also stated that it would be providing the other necessary details pertaining to the business transaction in the forthcoming months.