TreeHouse Foods Inc. has completed the sale of the McCann’s Irish Oatmeal brand to B&G Foods for $32 million, subject to customary closing and post-closing adjustments. Sales of the business were approximately $13 million in 2017. The transaction is expected to have a negligible impact on TreeHouse’s 2018 earnings.
“McCann’s Irish Oatmeal is a wonderful brand that has great opportunity to flourish under B&G Foods’ branded food umbrella,” said Steve Oakland, president and CEO of TreeHouse Foods. “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.”
The story of McCann’s Irish Oatmeal dates back to 1800 when John McCann built a mill in County Meath, Ireland, to grind the raw oats harvested on Ireland’s East Coast. In the early part of the 20th century, exports of McCann’s Irish Oatmeal greatly increased, particularly to the U.S. and Canada, enabling the inhabitants of New York, Boston, Philadelphia, Detroit, San Francisco, Montreal and Vancouver to enjoy steel cut Irish oats.
In 1964, Odlums Group acquired John McCann’s business and transferred production to its own oatmeal mill, which had been in operation since 1910. TreeHouse Foods acquired the McCann’s Irish Oatmeal brand through its purchase of Sturm Foods in 2010.