JM Sucker is Selling its Baking Brand Business for $375 Million

J.M. Smucker announced on Monday that it would be selling Pillsbury as well as other US baking brands for $375 million.

Private equity firm Brynwood Partners will be buying the business which also includes other brands like Martha White and Hungry Jack.

As part of the deal, a manufacturing facility in Toledo, Ohio is also being offered. The deal does not include the baking business in Canada.

Chief Executive Officer Mark Smucker stated, “The divestiture reflects our strategy to further focus our portfolio and develop a stronger presence in pet food, coffee, and snacking.”

According to J.M. Smucker, the baking brand business saw net sales of around $370 millio for the fiscal year ended April 30th.

The transaction is expected to close in fiscal 2019’s second quarter.

Disclaimer: We have no position in J M Smucker Co. (NYSE: SJM) and have not been compensated for this article.