ORRVILLE, Ohio, Jan. 31,
2025 /PRNewswire/ -- The J.M. Smucker Co. (NYSE:
SJM) announced today it has reached a definitive agreement to
divest its Cloverhill and Big Texas brands, as well as certain
private label products, to JTM Foods, LLC (JTM). The all-cash
transaction is valued at approximately $40
million, subject to a working capital adjustment, and
includes relevant trademarks and licenses and the Company's
manufacturing facility in Chicago,
Illinois. Approximately 400 employees will also transition
with the business.
"This divestiture reflects our continued commitment to portfolio
optimization to prioritize resources to support the execution of
our Sweet Baked Snacks strategy, focused on growing the
Hostess® brand, and advancing our leadership in the sweet
baked goods category," said Dan
O'Leary, Senior Vice President and General Manager, Sweet
Baked Snacks and Pet. "This decision continues the ongoing work to
ensure our manufacturing network is optimized to mitigate costs and
reduce complexity."
The divested value brands and private label products
generated net sales of approximately $30
million for the Company's fiscal year ended April 30, 2024, which represents a partial year
of net sales reported in its Sweet Baked Snacks segment results
following its acquisition on November 7,
2023. For fiscal year 2025, the Company anticipates
full-year net sales from the divested value brands and private
label products to be approximately $60
million.
The Company expects the divestiture to be immaterial to its
adjusted earnings per share on a full-year basis. The Company
anticipates using the net proceeds from the transaction to pay down
debt. The Company will provide additional information about the
transaction's impact, which is expected to be immaterial to its
fiscal year 2025 outlook, when it releases its third quarter
results.
The transaction is anticipated to close in the fourth quarter of
the Company's current fiscal year ending April 30, 2025. RBC Capital Markets, LLC, is
serving as the Company's financial advisor, and Benesch,
Friedlander, Coplan & Aronoff LLP is serving as the Company's
legal advisor in connection with the transaction.
The J.M. Smucker Co. Forward Looking Statements
This press release ("Release") includes certain forward-looking
statements within the meaning of federal securities laws. The
forward-looking statements may include statements concerning our
current expectations, estimates, assumptions and beliefs concerning
future events, conditions, plans and strategies that are not
historical fact. Any statement that is not historical in nature is
a forward-looking statement and may be identified by the use of
words and phrases such as "expect," "anticipate," "believe,"
"intend," "will," "plan," "strive" and similar phrases. Federal
securities laws provide a safe harbor for forward-looking
statements to encourage companies to provide prospective
information. We are providing this cautionary statement in
connection with the safe harbor provisions. Readers are cautioned
not to place undue reliance on any forward-looking statements,
which speak only as of the date made, when evaluating the
information presented in this Release, as such statements are by
nature subject to risks, uncertainties and other factors, many of
which are outside of our control and could cause actual results to
differ materially from such statements and from our historical
results and experience. These risks and uncertainties include, but
are not limited to, the following: uncertainties relating to the
timing of the consummation of the sale of the Cloverhill and
Big Texas brands and
certain private label products to JTM (the "Transaction"); the
possibility that any or all of the conditions to the consummation
of the Transaction may not be satisfied or waived; and those
described under "Risk Factors" in reports and statements filed by
the Company with the U.S. Securities and Exchange Commission. We do
not undertake any obligation to update or revise these
forward-looking statements to reflect new events or
circumstances.
About The J.M. Smucker Co.
At The J.M. Smucker Co., it is our privilege to make food people
and pets love by offering a diverse family of brands available
across North America. We are proud
to lead in the coffee, peanut butter, fruit spreads, frozen
handheld, sweet baked goods, dog snacks, and cat food categories by
offering brands consumers trust for themselves and their families
each day, including Folgers®,
Dunkin'®, Café Bustelo®, Jif®,
Smucker's® Uncrustables®,
Smucker's®, Hostess®,
Milk-Bone®, and Meow
Mix®. Through our unwavering commitment to producing
quality products, operating responsibly and ethically and
delivering on our Purpose, we will continue to grow our business
while making a positive impact on society. For more information,
please visit jmsmucker.com.
The J.M. Smucker Co. is the owner of all trademarks
referenced herein, except for Dunkin'®,
which is a trademark of DD IP Holder LLC.
The Dunkin'® brand is licensed to The
J.M. Smucker Co. for packaged coffee products sold in retail
channels such as grocery stores, mass merchandisers, club stores,
e-commerce and drug stores, and in certain away from home channels.
This information does not pertain to products for sale
in Dunkin'® restaurants.
View original content to download
multimedia:https://www.prnewswire.com/news-releases/the-jm-smucker-co-announces-agreement-to-divest-certain-value-brands-in-continued-portfolio-optimization-of-sweet-baked-snacks-segment-302365575.html
SOURCE The J.M. Smucker Co.
