The J.M. Smucker Co. has entered into a definitive agreement to sell its Crisco oils and shortening business to B&G Foods Inc. in a cash transaction valued at approximately $550 million.
The divestiture of the Crisco business aligns with the company's previously stated intent to exit the U.S. baking category and focus more of its resources on its core growth platforms of pet food, coffee, and snacking.
The transaction encompasses oils and shortening products sold under the Crisco brand, certain trademarks and licensing agreements, dedicated manufacturing and warehouse facilities located in Cincinnati, and approximately 160 employees who support the Crisco business.
The business generated net sales of approximately $270 million for the company's fiscal year ended April 30, 2020, which were primarily reported in its U.S. Retail Consumer Foods segment. The transaction also includes the company's oils and shortening business outside the U.S., which is primarily in Canada.
The transaction is expected to close in the third quarter of the company's 2021 fiscal year, subject to customary closing conditions, including receipt of required regulatory approvals.