PRNewsfoto/The J.M. Smucker Co.
J.M. Smucker Co. announced it has entered into a definitive agreement to sell its Bick's pickles, Habitant pickled beets, Woodman's horseradish and McLarens pickled onions brands to TreeHouse Foods, a private label food and beverage manufacturer in North America.
The all-cash transaction is valued at approximately US$20 million USD, subject to a working capital adjustment.
"This decision will allow us to enhance focus on growing our position in the coffee, spreads, frozen handheld and pet categories in Canada with leading and emerging brands such as Folgers, Smucker's, Jif, Smucker's Uncrustables, Meow Mix and Milk-Bone, and supporting continued leadership in the baking category with our Robin Hood, Five Roses, Carnation and Eagle Brand brands," says Tim Wayne, senior vice-president and general manager, Away From Home, Canada and International. "On behalf of the organization, I would like to extend our appreciation to the employees who have worked diligently to support these brands, which have played an important role in our Canadian portfolio."
The company expects the impact of the divestiture to be immaterial to its adjusted earnings per share on a full-year basis. The transaction is anticipated to close in the third quarter of the company's current fiscal year ending April 30, 2024, subject to customary closing conditions.