General Mills Inc.GIS is voluntarily recalling a limited quantity of frozen Cascadian Farm Cut green beans after it found bacteria in one package.
16-ounce bags of these frozen vegetables, with manufacturing date of Jun 2015 and "Better If Used By" date of Jun 29, 2017, are being recalled by the company.
A package of the product tested positive for the presence of a form of bacteria - Listeria monocytogenes - which prompted management to recall the product as a precautionary measure. As per General Mills, no illness has been reported yet.
Last August too, General Mills recalled 10-ounce bags of this brand of green beans due to presence of Listeria bacteria in a pack.
General Mills has entered into a deal to sell another brand of its frozen vegetables. Last month, the company announced definitive plans to sell its Green Giant and Le Sueur brands of frozen and shelf stable vegetables to a food manufacturer, B&G Foods, Inc. BGS , in a cash transaction worth approximately $765 million.
The sale includes the company's Green Giant and Le Sueur businesses in the U.S., Canada and some other markets. General Mills will, however, continue to operate the Green Giant business in Europe and certain other select markets, primarily in Asia and the Middle East, under license from B&G Foods. The transaction is expected to be closed before the end of the current calendar year, subject to regulatory approvals.
General Mills plans to use the proceeds from the sale for repurchasing shares and repaying debts. However, the deal will likely be dilutive to the company's fiscal 2016 earnings per share by approximately 5-7 cents, excluding transaction costs and a one-time gain from the sale.
Stocks to Consider
General Mills carries a Zacks Rank #3 (Hold). Two better-ranked stocks in the food sector are Cal-Maine Foods, Inc. CALM and Omega Protein Corporation OME , both sporting a Zacks Rank #1 (Strong Buy).
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