B&G Foods (BGS) shares rose 5.2% on Tuesday, although they lost some of that gain in extended trading, after the company sold its Don Pepino and Sclafani brands, along with a New Jersey plant, to Violet Foods.
Financial details weren't disclosed.
The deal "is consistent with our efforts to reshape our portfolio, focus on our core brands, and reduce long-term debt," CEO Casey Keller said.
Don Pepino produces sauces used in pizza, while Sclafani sells tomato products, including puree, whole peeled tomatoes, and other tomato-based goods.
Violet Foods is a newly formed portfolio company of Amphora Equity Partners, a private equity firm specializing in the packaged food and beverage sector.
The divestiture is part of an ongoing strategy to offload smaller brands under B&G Foods, which is popularly known for Ortega (taco shells and sauces), Cream of Wheat (cereals), and Crisco (vegetable oils).
B&G sold its Green Giant canned goods line to Seneca Foods in 2023, and a year earlier, it offloaded the Back to Nature snacks brand to Barilla. The company is now exploring a sale of its Green Giant frozen division.
On Stocktwits, the retail sentiment dropped to 'bearish' from 'neutral.'
The user noted that the company's restructuring is underway, and it could be a good time to buy the stock.
BofA Securities acted as financial advisor to B&G Foods.
BGS shares are down 39% year to date.
For updates and corrections, email newsroom[at]stocktwits[dot]com.