B&G Foods Inc. acquired the frozen vegetable manufacturing operations of Growers Express LLC, which manufactures, produces, packages and sells frozen vegetable products, including B&G brand Green Giant Riced Veggies and Green Giant Veggie Spirals.
The purchase, announced May 5, includes include inventory, equipment, a sublease for a portion of a manufacturing facility in Yuma, Ariz., and a lease for a warehouse facility in San Luis, Ariz.
About 155 Growers Express employees will become B&G Foods employees.
“By increasing the variety and volume of Green Giant frozen vegetable products produced at internal manufacturing facilities, we expect to reduce inefficiencies, reduce costs and reduce supply chain risk for certain Green Giant frozen products. We also believe that this acquisition will enhance our innovation efforts for the Green Giant brand and improve our speed to market for new innovation,” said B&G Foods President and CEO Casey Keller. “Growers Express has been an important partner of B&G Foods for a number of years and we thank them for their partnership.”
As part of the acquisition, Parsippany-based B&G Foods also repurchased the master license agreement for certain Green Giant Fresh vegetable products and will assume responsibility for the administration of related sublicense agreements.
Growers Express has worked with B&G Foods on product innovation and quality since 2016, “benefitting from the strategic position of our facilities and delivering to the highest quality and food safety standards,” according to Growers Express CEO Mark Dendle and Chief Operating Officer Kirk Wagner.
“We are extremely thankful for all the Team Members who developed one of the largest riced and spiralized frozen vegetable production facilities globally,” they said in a joint statement.
B&G Foods funded the acquisition and related fees and expenses with cash and revolving loans under its existing credit facility. The company said the acquisition is expected to result in a slight reduction to its consolidated leverage ratio.
Financial terms of the transaction were not disclosed.