Basic American to Buy Pillsbury Unit

Pillsbury Co., a unit of Britain’s Diageo, agreed to sell its potato food service business and a plant in Idaho for an undisclosed price to Walnut Creek-based Basic American. Closely held Basic American, which processes dehydrated potato and beans for food service companies and supermarkets, said it will retain all 410 employees at the Shelley, Idaho, plant. The company’s brands include Potato Pearls, Excel, Santiago, GoldenGrill and Classic Casseroles. Minneapolis-based Pillsbury--whose brands include Green Giant, Haagen-Dazs, Progresso and Hungry Jack--is selling or consolidating plants that aren’t as profitable as its marketing of branded frozen foods and refrigerated dough products. In January, Pillsbury will close a Haagen-Dazs ice cream plant in Woodbridge, N.J., and shift that production to another Haagen Dazs plant in Tulare. Britain’s Diageo, the world’s biggest liquor company, with brands including Guinness and Smirnoff, also owns Burger King restaurants. Its American depositary receipts rose 75 cents to close at $45.88 on the NYSE.