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B&G Foods Buys Green Giant from General Mills for $765 Million

B&G Foods Inc, a snack food company, announced it is buying General Mills Inc’s Green Giant frozen foods and Le Sueur canned vegetables brands for $765 million in an attempt to boost its distribution network and get into the frozen foods market. B&G, who expects the deal to add to earnings immediately, saw its shares rise 14% on Thursday.

The frozen vegetables market has seen so slower growth in recent yeas due to consumers buying fresher items. Due to this companies have spent less money on marketing for frozen foods.

In a conference call B&G CEO Robert Cantwell said, the company plans to spend double the amount General Mills spent on marketing Green Giant. He also said, “In General Mills, Green Giant was an important brand, but they had a different direction…. It makes more sense under B&G’s ownership and we’re going to pay a lot more attention to it.”