Reuters — J.M. Smucker Co. said on Monday it would sell its U.S. baking business, which includes brands such as Pillsbury, Martha White and Hungry Jack, to private equity firm Brynwood Partners for US$375 million.
The deal includes a manufacturing facility in Toledo, Ohio, but excludes the baking business in Canada, the company said.
“The divestiture reflects our strategy to further focus our portfolio and develop a stronger presence in pet food, coffee, and snacking,” CEO Mark Smucker said in a statement.
Smucker in May completed its $1.9 billion acquisition of Rachael Ray Dog food maker Ainsworth Pet Nutrition (all figures US$).
The company said it expected the divestiture to reduce adjusted earnings by 25 cents to 30 cents on a full-year basis, while net impact would be only slightly dilutive to its fiscal 2019 adjusted earnings per share.
The business generated net sales of about $370 million for its fiscal year ended April 30, the company said.
The transaction is expected to close in the second quarter of the company’s 2019 fiscal year.
The Canadian consumer baking brand portfolio remaining with Smucker includes Robin Hood, Five Roses and Golden Temple flours, Crisco shortening, Carnation evaporated milk, Eagle Brand condensed milk and In The Raw sugar and stevia.
— Reporting for Reuters by Arjun Panchadar in Bangalore. Includes files from AGCanada.com Network staff.