J.M. Smucker Co. completes divestiture of Voortman brand
The J.M. Smucker Co. announced the closing of the transaction to divest the Voortman business to Second Nature Brands.
J.M. Smucker Co. previously announced the signing of a definitive agreement for the transaction on October 22, 2024. The all-cash transaction is valued at approximately $305 million, subject to a working capital adjustment, and reflects the Company's continued commitment to optimizing its portfolio and reallocating resources to its core growth brands.
"This decision reflects our continued commitment to portfolio and resource optimization to focus on our largest growth opportunities as a company," said Mark Smucker, chair of the board, president and chief executive officer upon the announcement of the signing of the agreement in October. "The divestiture of the Voortman brand is an important step in our integration plans that will enable the execution of our Sweet Baked Snacks strategy through dedicated focus and ongoing investments in the Hostess brand, advancing our leadership in the sweet baked goods category. I want to recognize and thank the many talented teams who have supported this brand."
READ: J.M. Smucker Co. announces sale of Voortman brand to Second Nature Brands
The transaction includes all Voortman trademarks and the company's leased manufacturing facility in Burlington, Ontario, Canada. In addition, approximately 300 employees will transition with the business.
J.M. Smucker Co. updated its full-year fiscal 2025 net sales guidance to reflect the impact of the divested business. Net sales is anticipated to increase 7.5 to 8.5% compared to the prior year. The updated net sales guidance reflects the removal of approximately $65 million of divested net sales in fiscal 2025, with the estimated net sales impact evenly distributed throughout the remainder of the fiscal year.
