Heinz Sells Frozen-Food Unit to Luigino’s

H.J. Heinz Co. said it sold the All American Gourmet Co. frozen-food business to closely held Luigino’s Inc. for an undisclosed price. Heinz will take a charge of about $65 million from a loss on the disposal of All American Gourmet, which makes Budget Gourmet and Budget Gourmet Value Classics frozen entrees. Heinz is selling the business to focus on faster-growing frozen-food lines, including Boston Market HomeStyle Meals and Smart Ones entrees and desserts. The transaction will cut 2 cents a share from earnings for the year ending in April and will cut 4 cents from next year because of lost sales, the company said. The frozen-food business brought in sales of more than $1.5 billion last year, said Heinz, whose revenue totaled $9.41 billion last year. Luigino’s, based in Sanford, Fla., makes frozen entrees and snacks under the Michelina’s brand. Shares of Pittsburgh-based Heinz fell 58 cents to close at $44.09 on the New York Stock Exchange. The announcement came after the close of U.S. markets.