Kraft Sells Cream of Wheat for $200 Million

Kraft Foods Inc. (KFT) said Tuesday it would sell its hot cereal business, including the popular Cream of Wheat products, to a subsidiary of B&G Foods Inc. (BGF) for $200 million.

"Our decision to sell Cream of Wheat is part of a broader effort at Kraft to focus our portfolio," Rick Searer, president of Kraft's North America commercial segment, said in a statement.

Kraft, the world's second-largest food manufacturer, said the sale to Parsippany, N.J.-based B&G also includes the Cream of Rice label and manufacturing equipment.

Last year, the Cream of Wheat brand had a net revenue of $60 million.

The sale requires regulatory approval.

The Northfield-based company said it expects to record a pretax asset impairment charge of $69 million. The deal will be dilutive by .01 cent per share in 2007.