Pillsbury Sells Six Brands to B&G Foods

The Pillsbury Company has announced the sale of six non-strategic brands to B&G Foods, Inc. of Roseland, NJ. The purchase price is $192 million. The transaction is expected to close by mid-March.

The brands are Underwood meat spreads, B&M baked beans, Ac'cent flavor enhancer, Sa-son Ac'cent flavor enhancer, Las Palmas ethnic Mexican food, and Joan of Arc canned beans.

Pillsbury will continue to market Underwood meat spreads in Venezuela under the Diablitos brand name.

The Portland, ME, facility of B&M baked beans is part of the sale. Pet Evaporated Milk, which was part of the original sale proposal, is not included in this transaction.

Ac'cent flavor enhancer, Sa-son Ac'cent flavor enhancer, and Underwood meat spreads will continue to be manufactured at the Hannibal, MO, plant under a co-pack arrangement with B&G Foods.

``These are brands with good prospects,'' said Paul Walsh, Pillsbury CEO. ``Nonetheless, we have determined that our best course is to pursue a strategy of internationalizing our megabrands Pillsbury, Green Giant, Old El Paso, and Haagen-Dazs -- as well as building significant U.S. brands such as Progresso, Hungry Jack, and Totino's.''

Pillsbury produces a range of grocery items, frozen foods, and refrigerated dough products for international consumer markets, including North America, Europe, Latin America, and the Far East. The company is also a major supplier of baking and other food products to the foodservice and commercial baking industries.