JM Smucker has agreed to sell its Crisco oils and shortening business to B&G Foods for approximately $550 million.
The Ohio-based company says that the move aligns with previously announced plans to exit the US baking category and focus on its core growth platforms of coffee, snacking and pet food.
In 2018, JM Smucker sold Pillsbury and other baking brands to private equity firm Brynwood Partners in a $375 million deal.
This latest divestiture includes products sold under the Crisco brand, certain trademarks and licensing agreements, and manufacturing and warehouse facilities in Ohio.
The company’s oils and shortening business outside the US – which is primarily located in Canada – is also part of the deal.
“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 CEO, JM Smucker.
“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.”
Crisco generated net sales of approximately $270 million for JM Smucker’s fiscal year ended 30 April 2020.
The transaction is expected to close in the third quarter of the company’s 2021 fiscal year, subject to customary closing conditions, including regulatory approvals.
© FoodBev Media Ltd 2020