JM Smucker completes sale of US baking business for $375m

US-based food manufacturer JM Smucker Company (JM Smucker) has completed the sale of its US baking business to Brynwood Partners VII and Brynwood Partners VIII for $375m.

In July, JM Smucker signed a definitive agreement to sell its portfolio of brands.

As per the terms of the agreement, Brynwood Partners VII and Brynwood Partners VIII have acquired exclusive US rights to Pillsbury brand’s shelf-stable baking products along with, Martha White, Hungry Jack, White Lily, and Jim Dandy brands.

The license agreement of Pillsbury brand is a royalty-free, perpetual agreement with General Mills and covers all shelf-stable baking products in the US such as dry baking mixes, ready-to-spread frosting and flour sold to the retail channel.

The agreement, which also covers JM Smucker’s 65,000ft² manufacturing facility located in Toledo of Ohio, does not include the company’s baking business in Canada.

At the time of acquisition, JM Smucker president and CEO Mark Smuckers had said: “The divestiture reflects our strategy to further focus our portfolio and develop a stronger presence in pet food, coffee, and snacks – all large, growing categories with sustainable growth projections.

“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.”

JM Smucker’s US baking business is reported to have generated net sales of roughly $370m during the last fiscal year, ending 30 April.