TreeHouse Foods has offloaded its McCann’s Irish Oatmeal brand to B&G Foods for $32 million as the US company aims to streamline its business.
McCann’s recorded sales of around $13 million in 2017 and the acquisition follows on from B&G’s purchase last year of snack brand Back to Nature Foods. McCann’s complements B&G’s hot wheat cereal brand Cream of Wheat.
Founded in 1800, McCann’s Irish Oatmeal increased its exports in the early part of the 20th century, particularly to the US and Canada. TreeHouse Foods acquired the brand through its purchase of Sturm Foods in 2010.
TreeHouse Foods 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.”
In 2015 Treehouse Foods bought Conagra’s private label operations for $2.7 billion, a year after acquiring healthy snack manufacturer Flagstone Foods.
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