Portland B&M plant to go from beans to 'brains' as Roux Institute campus
File photo / William Hall
Th B&M bean factory in Portland, whose iconic smokestack was recently removed, will be transformed into a campus for Northeastern University's Roux Institute under an agreement unveiled on Monday.
An iconic Portland building will get a major repurposing, from making beans for B&G Foods Inc. (NYSE: BGS) to serving as the home campus for Northeastern University's Roux Institute, under an agreement announced Monday.
B&G Foods, which is based in Parsippany, N.J., recently tore down its 145-foot-high smokestack at the B&M Baked Beans factory located in the city's East Deering neighborhood about 2 miles from downtown.
The company said Monday that it has agreed to sell the manufacturing facility and surrounding 13.5-acre waterfront property to the Institute for Digital Engineering and Life Sciences for an undisclosed amount.
B&M will, in turn, move manufacturing operations of B&M, Underwood and some other brands to third-party co-manufacturing facilities and existing B&G Foods manufacturing facilities.
The decision to close the Portland manufacturing facility, which is more than 100 years old, is consistent with B&G Foods’ ongoing efforts to improve productivity and reduce overall costs, the company said.
The Portland property will become the future home of the Roux Institute at Northeastern University, which aims to turn Maine's largest city into an "innovation hub" focused on technology and life sciences.
The campus, which will include facilities for partner companies, housing and other amenities, will be built in phases over a decade or more, and will include coastal restoration to open waterfront areas to the public, according to Monday's announcement.
“The Portland community has been the home to B&M for more than a century, and while this was a very difficult decision, we believe it is in the best interest for the future of Portland," said Casey Keller, president and CEO of B&G Foods.
"We are confident the Roux Institute will build a new longstanding legacy on the property, one that will enrich Portland residents in new and exciting ways, and will endure as a force for good in the community for generations to come."
He also expressed gratitude to employees, adding that "we are committed to supporting their transition with financial support and assistance finding new employment.”
The Portland factory employs around 86 people.
B&G Foods said it has a plan in place to offer all eligible employees severance and career transition support, and that the Roux Institute will provide further support through career connections with Maine employers, educational opportunities with academic partners, and possible student pathways into Northeastern and Roux.
B&G Foods also said it does not anticipate any disruption in production or the delivery of customer orders relating to the transition of manufacturing operations, which is expected to be completed during the fourth quarter of 2021 or the first quarter of 2022.
Sale closing timetable and other details
The sale, which is subject to customary closing conditions, is expected to close by year's end.
In connection with the closing of the facility, B&G Foods expects to trigger a multi-employer pension plan withdrawal liability with an estimated present value of $14.1 million, payable over 20 years in installments of approximately $900,000 per year. During the third and fourth quarters of fiscal 2021,
B&G Foods expects to record cash and noncash charges relating to the multi-employer pension plan withdrawal liability, employee severance and other employee costs, the write-off of equipment and other assets and other fees, costs and expenses relating to the plant closing.
The annual cash payments for the multi-employer pension plan withdrawal liability are expected to be more than offset by cost savings resulting from the transition of the manufacturing operations, and the remainder of the cash portion of the one-time charges are expected to be largely offset by the proceeds of the sale of the Portland property.
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How sad to lose a historic business like this... Future generations will never experience the joy of driving through the area and catching a whiff of the sweet molasses simmering in iron cauldrons. Sure wish I could have one of those cauldrons as a remembrance.
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