General Mills selling Green Giant brand to B&G Foods for $765 million

General Mills (GIS) plans to sell its vegetable brands Green Giant and Le Sueur to B&G Foods (BGS) for $765 million, General Mills said Thursday.

The cash deal will allow General Mills to focus on growing its business in other brands, categories and geographic areas with the most potential, the company said. In an interview with USA TODAY, General Mills spokesperson Bridget Christenson said the company is focusing more on other categories such as cereal, yogurt and snacks. General Mills, based in Minneapolis, owns major brands like Cheerios and Yoplait.

Green Giant's products include fresh and frozen vegetables, hummus and frozen vegetable side dishes. Le Sueur, originally a separate Green Giant brand, sells canned vegetables. General Mills has owned the brands since 2001, when it acquired Pillsbury, the previous owner of Green Giant. The brands had net sales of around $585 million in fiscal year 2015, according to General Mills.

The sale comes as no surprise given the shift in consumer preferences away from shopping in the middle of grocery stores, where aisles are dominated by packaged, frozen and canned food, says Jack Russo, an Edward Jones analyst who follows General Mills. Even though brands like Green Giant and Le Sueur are known for selling vegetables, consumers increasingly want the fresher options in the produce aisle, he says.

"General Mills is trying to get their portfolio more focused on health and wellness," Russo says. "They're trying to do the best they can to reposition themselves."

B&G owns more than 40 food brands including Ortega, Cream of Wheat and Rickland Orchards. General Mills said it will continue to operate Green Giant in Europe and certain other export markets under license from B&G. The deal is expected to be finalized by the end of the year.

Follow Hadley Malcolm on Twitter @hadleypdxdc.