CIMBALI
Saturday 02 November 2024
  • DVG De Vecchi
  • La Cimbali

The JM Smucker Co. to sell its Crisco oils and shortening business to B&G Foods

Must read

Dalla Corte
TME - Cialdy Evo
Demuslab

ORRVILLE, Ohio, U.S. – The JM Smucker Co, the parent company of the Folgers, Café Bustelo and 1850 coffee brands, announced yesterday it has entered into a definitive agreement to sell its Crisco oils and shortening business to B&G Foods, Inc. in a cash transaction valued at approximately $550 million. The divestiture of the Crisco business aligns with the Company’s previously stated intent to exit the U.S. baking category and focus more of its resources on its core growth platforms of pet food, coffee, and snacking.

The transaction encompasses oils and shortening products sold under the Crisco brand, certain trademarks and licensing agreements, dedicated manufacturing and warehouse facilities located in Cincinnati, Ohio, and approximately 160 employees who support the Crisco® business. The business generated net sales of approximately $270 million for the Company’s fiscal year ended April 30, 2020, which were primarily reported in its U.S. Retail Consumer Foods segment. The transaction also includes the Company’s oils and shortening business outside the U.S., which is primarily in Canada.

“Crisco® is an iconic brand that is beloved by consumers, and the business has been a solid contributor to our financial performance,” said Mark Smucker, President and Chief Executive Officer, The J.M. Smucker Co. “However, our strategic priorities include an increased focus and allocation of resources toward pet food and pet snacks, coffee, and snacking to maintain momentum in these categories. Today’s announcement helps position the Company to further grow our core businesses and unlock value for our shareholders.”

The Company expects the divestiture to be dilutive to its adjusted earnings per share in the range of $0.45 to $0.55 on a full-year basis, reflecting the foregone profit related to the oils and shortening business, before factoring in any potential benefit from the use of proceeds from the sale. The Company will further discuss the transaction’s impact on its fiscal year 2021 outlook when it releases its second quarter results in November.

The transaction is expected to close in the third quarter of the Company’s 2021 fiscal year, subject to customary closing conditions, including receipt of required regulatory approvals.

The Company appointed Goldman Sachs & Co. LLC as exclusive financial advisor and Benesch, Friedlander, Coplan & Aronoff LLP as legal advisor to assist with the sale of the Crisco® oils and shortening business.

CIMBALI

Latest article

  • Franke Mytico
  • Gimoka
Demus Art of decaffeination