General Mills Inc. is selling its vegetable brands Green Giant and Le Sueur to B&G Foods, according to the Associated Press. The deal is a big win for the company, with General Mills cashing in $765 million.
The move allows for the company to focus most of its energy into other brands, American tastes and interests moving away from packaged foods, according to USA Today.
General Mills plans on focusing more on cereal and yogurt, the products that drive most of its current sales, according to the AP.
Green Giant's products consist of fresh and frozen vegetables, while La Sueur's products include canned vegetables, according to USA Today. In 2015, the two brands had net sales of about $585 million, with sales dropping every fiscal year.
Along with gaining the two brands, B&G expects to receive $137 million in tax benefits from the sale, according to the Wall Street Journal. B&G also owns the food brands Molly McButter and Pirate's Booty.
General Mills is only selling the brands Green Giant and La Sueur in U.S. and Canadian markets, according to the AP. They will still control Green Giant's European business and certain export markets around the world.
While the deal has not yet been finalized, it is expected to close by the end of the fourth quarter, according to the Wall Street Journal.
