Snack food company B&G Foods Inc said it would purchase General Mills Inc's Green Giant frozen foods and Le Sueur canned vegetables brands for about $765 million to expand its distribution network and enter the frozen foods market.Shares of B&G, which expects the deal to add to earnings immediately, rose as much as 14 percent to a 14-month high on Thursday.Growth in the frozen vegetables category has been sluggish in recent years as consumers shift to fresher items. This has led to companies scaling back marketing spend on frozen foods. B&G plans to double the amount General Mills has been spending on marketing the Green Giant brand, B&G Chief Executive Robert Cantwell said on a conference call.
B&G Foods, Inc. (B&G Foods) is a holding company that manufactures, sells and distributes a range of shelf-stable food and household products across the United States, Canada and Puerto Rico. Shares of BGS traded higher by 12.09% or $3.68/share to $34.13. In the past year, the shares have traded as low as $27.03 and as high as $34.83. On average, 330909 shares of BGS exchange hands on a given day and today's volume is recorded at 1957829.