JM Smucker Co has entered into a definitive agreement to sell its Sahale Snacks brand to Second Nature Brands in an all-cash transaction valued at approximately $34 million.
The transaction encompasses all trademarks and the company’s leased manufacturing plant in Seattle, Washington, which currently employs around 100 people.
Sahale Snacks is known for its premium snacks crafted from high-quality ingredients like nuts, fruits and spices, offering a range of flavours and formats, including glazed mixes, trail mixes, bars and convenient grab-and-go snacks.
Second Nature Brands, a US-based manufacturer, specialises in premium, nutritional and better-for-you snacks and treats.
“This divestiture reflects our continued commitment to portfolio and resource optimization to sharpen our focus and support continued growth,” said Mark Smucker, chair of the board, president and CEO at JM Smucker Co.
He continued: “The divestiture of the Sahale Snacks brand will support continued growth in our Consumer Foods business with enhanced investment in our Smucker’s Uncrustables brand and building on our leadership in spreads. As always, any decision that impacts our employees is only made after careful consideration and I want to thank all who have supported this brand, which has played an important role in our consumer foods portfolio.”
For the fiscal year ending April 30 2023, Sahale Snacks reported net sales of approximately $48 million within its US retail consumer foods segment.
The company anticipates that the divestiture’s impact on its adjusted earnings per share for the full year will be immaterial. Further details on the transaction’s impact on the fiscal year 2024 outlook will be provided during the next quarterly earnings call.
Subject to customary closing conditions, the transaction is expected to conclude in the third quarter of the company’s current fiscal year, ending April 30 2024. Calfee, Halter & Griswold LLP is serving as the company’s legal advisor in connection with the transaction.
JM Smucker recently acquired Hostess Brands, the owner of Twinkies snack cakes, for approximately $5.6 billion. The acquisition is said to bolster the company’s existing portfolio by introducing Hostess Brands’ snacks and sweet baked goods innovation to JM Smucker’s current line-up of brands across the coffee, peanut butter, frozen handhelds, fruit spreads, dog snacks and cat food categories.
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