ORRVILLE, OHIO — Private equity firm Brynwood Partners has entered an agreement to acquire the U.S. baking business of The J.M. Smucker Co. for $375 million. Brands to be included in the transaction are Pillsbury, Martha White, Hungry Jack, White Lily and Jim Dandy.
Based in Greenwich, Conn., Brynwood Partners owns several food and beverage companies, including Harvest Hill Beverages and Joseph’s Gourmet Pasta.
“The divestiture reflects our strategy to further focus our portfolio and develop a stronger presence in pet food, coffee, and snacking — all large, growing categories with sustainable growth projections,” said Mark Smucker, president and chief executive officer. “Pillsbury, Martha White, and Hungry Jack remain iconic brands and, although they no longer align with our strategic priorities, we are confident they will be nurtured at Brynwood. While the decision to divest these brands was difficult, it underscores our commitment to allocating resources toward those areas of the business critical to our growth.”
The divested businesses generated net sales of approximately $370 million during Smucker’s fiscal year ended April 30, 2018, and were primarily reported in its U.S. Retail Consumer Foods segment. The transaction does not include the company’s baking business in Canada.
Smucker management said they expect the divestiture to be dilutive to its adjusted earnings per share by 25c to 30c on a full year basis. The transaction is expected to close during the second quarter of Smucker’s 2019 fiscal year. It is subject to traditional closing conditions, including regulatory approvals.