The J.M. Smucker Co. (NYSE: SJM) announced today 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, Inc., a leading private label food and beverage manufacturer in North America. The all-cash transaction is valued at approximately $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 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, Sr. 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 brands included in the transaction generated net sales of approximately $60 million USD for the Company's fiscal year ended April 30, 2023, which were reported in its International and Away From Home results.
The Company expects the impact of the divestiture to be immaterial to its adjusted earnings per share on a full-year basis. The Company will provide additional information about the transaction's impact on its fiscal year 2024 outlook during the next quarterly earnings call.
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.
