Food Firm J.M. Smucker to Sell U.S. Baking UnitFood Firm J.M. Smucker to Sell U.S. Baking Unit
July 10, 2018
Well-known American baking brands like Pillsbury and Hungry Jack will soon come under the ownership of two private equity firms after American food and beverage manufacturer J.M. Smucker Company agreed to shed its U.S. baking business, the Orrville, OH-based firm announced Monday.
The sale of the business to Brynwood Partners VIII L.P. and Brynwood Partners WII L.P. allows J.M. Smucker to strengthen its position in other categories it serves, a company press release 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,” Mark Smucker, the company’s chief executive officer and president, said in a statement. “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.”
Under the terms of the deal, which does not include J.M. Smucker’s baking business in Canada, Brynwood will take also possession of a manufacturing plant in Toledo, OH. Net sales of $370 million were logged by the baking business in the fiscal year that ended on Apr. 30, 2018, according to the company.
Following the completion of regulatory approvals, the company expect the sale to close by the second quarter of J.M. Smucker’s 2019 fiscal year.
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