TreeHouse Foods completes sale of McCann’s Irish Oatmeal to B&G Foods

US-based packaged foods manufacturer TreeHouse Foods has completed the sale of its McCann’s Irish Oatmeal brand to B&G Foods for $32m in cash.

McCann’s Irish Oatmeal was originally established in the 1800s by John McCann after building a mill in County Meath to grind raw oats harvested on Ireland’s east coast.

TreeHouse Foods initially acquired McCann’s Irish Oatmeal brand through its purchase of Sturm Foods in 2010.

TreeHouse Foods president and CEO Steve Oakland said: “McCann’s Irish Oatmeal is a wonderful brand that has great opportunity to flourish under B&G Foods’ branded food umbrella.

“The divestiture supports our efforts to simplify and streamline our business and concentrate our efforts on private label categories that support our customers’ corporate brand initiatives.

“We expect proceeds from the transaction will be used to pay down debt.”

B&G Foods primarily used cash on hand for the acquisition, along with revolving loans under its existing credit facility.

B&G Foods president and CEO Robert C Cantwell said: “We are delighted to welcome the McCann’s brand to the B&G Foods family.

“McCann’s is an excellent complement to our existing portfolio of brands, including our Cream of Wheat hot cereal brand.

“This acquisition is another example, along with our acquisitions of Green Giant, Spice Islands and other spices and seasoning brands, Victoria and Back to Nature, of our efforts in recent years to acquire better-for-you brands that taste great and resonate with today’s consumer.”

B&G Foods is based in Parsippany, New Jersey, and is engaged in the production and supply of branded shelf-stable and frozen foods across the US, Canada and Puerto Rico.

The company’s portfolio consists of more than 50 brands, including Back to Nature, B&G, B&M, Cream of Wheat, Green Giant, Las Palmas, Le Sueur, Mama Mary’s and Maple Grove Farms.