J.M. Smucker Co. to Sell Fermented Food Condiment Brands in Canada

The J.M. Smucker Co. (NYSE: SJM) has announced its definitive agreement to divest several well-known fermented food condiment brands in Canada. The company is set to sell Bick's® pickles, Habitant® pickled beets, Woodman's® horseradish, and McLarens® pickled onions to TreeHouse Foods, Inc. (NYSE: THS), a prominent private label food and beverage manufacturer in North America. This all-cash deal is valued at approximately $20 million USD, subject to a working capital adjustment.

Tim Wayne, Sr. Vice President and General Manager, Away From Home, Canada and International, explained the decision, stating it would enable the company to concentrate on strengthening its presence in the Canadian market. The focus will be on leading and emerging brands, such as Folgers®, Smucker's®, Jif®, Smucker's® Uncrustables®, Meow Mix®, and Milk-Bone®. Simultaneously, the company will continue to maintain its leadership position in the baking category, supported by brands like Robin Hood®, Five Roses®, Carnation®, and Eagle Brand®.

Wayne expressed appreciation for the dedicated efforts of employees who have played a significant role in supporting the brands being divested, which have been vital to the company's Canadian portfolio.

The brands included in this transaction collectively generated approximately $60 million USD in net sales for the Company's fiscal year that ended on April 30, 2023. These figures were reported in the Company's International and Away From Home results.

The divestiture's impact on the company's adjusted earnings per share for the full year is expected to be immaterial. Further details about the transaction's effects on the fiscal year 2024 outlook will be provided during the upcoming quarterly earnings call.

The transaction is slated to close in thethird quarter of the Company's current fiscal year, concluding on April 30, 2024, subject to customary closing conditions.