J.M. Smucker to Buy Conagra’s Wesson Oil Brand for $285M

Conagra Brands Inc. is divesting from the Wesson Oil brand of edible oils in a $285 million sale to J.M. Smucker, a press release issued by Smucker on Tuesday said.

“The addition of Wesson creates a strong complement to our Crisco brand,” said Mark Smucker, chief executive officer of J.M. Smucker, in a statement. “By allowing us to more efficiently use existing supply chain and go-to-market resources, this acquisition will lead to significant cost savings that can further fuel growth and innovation opportunities across the company.”

Orrville, OH-based Smucker said it expects the transaction to drive annual net sales of $230 million and $20 million in annual cost synergies within two years following the close of the purchase.

“We continue to reshape our portfolio and focus our resources on priorities that support Conagra’s business strategy and drive value creation for shareholders,” Sean Connolly, president and chief executive officer of Conagra, said in a company press release announcing the transaction. “We believe J.M. Smucker will be a terrific steward of the Wesson brand.”

The transaction must complete closing conditions and regulatory approvals before the deal closes.

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