By Connor Hart
J.M. Smucker will sell several of its brands and products to JTM Foods for $40 million.
The maker of Jif peanut butter and Folger's coffee said Friday that it will divest its Cloverhill and Big Texas brands, as well as certain private label products. These assets are expected to generate about $60 million in sales annually.
The respective brands and products notched about $30 million in sales during a truncated period of Smucker's most recent fiscal year, it said.
The divestiture will allow the company to optimize its portfolio by increasing its focus on its Hostess brand and sweet baked-goods category, said Dan O'Leary, general manager of Smucker's sweet baked snacks and pet segment.
"This decision continues the ongoing work to ensure our manufacturing network is optimized to mitigate costs and reduce complexity," he said.
The sale includes all relevant trademarks and licenses, in addition to a manufacturing facility in Chicago. About 400 employees will transition with the business, the company said.
Anticipated to close before April 30, the deal isn't expected to affect the company's adjusted per-share earnings in fiscal 2024, or its outlook for fiscal 2025.
Smucker said it will provide additional information about the transaction when it discloses third-quarter earnings, which is projected for early March, according to FactSet.
Write to Connor Hart at connor.hart@wsj.com
(END) Dow Jones Newswires
January 31, 2025 16:41 ET (21:41 GMT)
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