JM Smucker sells its US baking business in $375mn deal
Consumer food and beverage firm, J. M. Smucker Company, has sold its US baking business to private equity firm Brynwood Partners.
In a deal valued at $375mn, the company sold its baking brands such as Pillsbury, Martha White and Hungry Jack along with their relevant trademarks and licensing agreements.
The purchase also includes the company's 650,000-square-foot manufacturing facility in Toledo, Ohio yet it excludes its baking business in Canada, the company said.
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The deal comes as J. M. Smucker tries to reshape its portfolio and focus on boosting its coffee and pet food businesses.
In April, the firm agreed to buy premium pet food company, Ainsworth Pet Nutrition in a deal valued at $1.9bn.
Speaking of the bakery business sale, President and chief executive Mark Smucker said: “The divestiture reflects our strategy to further focus our portfolio and develop a stronger presence in pet food, coffee, and snacking — all large, growing categories with sustainable growth projections.
“Pillsbury, Martha White, and Hungry Jack remain iconic brands and, although they no longer align with our strategic priorities, we are confident they will be nurtured at Brynwood.
“While the decision to divest these brands was difficult, it underscores our commitment to allocating resources toward those areas of the business critical to our growth.”
J. M. Smucker's baking business generates about £370mn in annual sales.
The US firm expects the sale will cut as much as 30 cents from its adjusted earnings per share on a full-year basis.