In September 2015, one of the biggest food providers announced that it will be selling its popular frozen food product brand. B&G Foods acquired the popular frozen food brand, Green Giant, from General Mills. B&G Foods manufactures sells and distributes a variety of food and house products in the United States, Canada, and Puerto Rico. Some of their brands include Baker’s Joy, Ortega, Pirate’s Booty, Mrs. Dash, Sugar Twin, Static Guard, Las Palmas, and Maple Groves Farm. The company was founded in November of 1996 and makes about $848 million dollars in revenues. General Mills is one of the largest food companies in the world. They make products such as cereals, baking products, fruits, vegetables, dough, soups, snacks, and etc. General Mills product brands include Cheerios, Pillsbury, Nature Valley, Yoplait, Betty Crocker, Old El Paso, and more. The company has sales in the U.S. of about $18.7 billion. General Mills headquarters lies in Minneapolis, Minnesota. Why would a multi- billion company want to sell one of their biggest product brands? General Mills strategic advantage is to use the money proceeds from the sale to focus on growth in their other brands, categories, and geographic areas with the most potential, said the company. Green Giant frozen products and Le Sueur, canned vegetables, was acquired by General Mills in …show more content…
B&G foods is not acquiring all of General mills, but just their brand, Green Giants. Does FASB identify this transaction to be a business combination? In the FASB Codification paragraph 805-10-25-1 states that in a business combination an acquirer can gain control of the acquiree in a number of ways. A business combination is achieved by incurring liabilities, issuing equity interests, providing more than one type of consideration, and transferring cash, cash equivalent, or other