SJM - The J.M. Smucker Co. Announces Agreement to Divest Sahale Snacks® Brand to Sharpen Focus and Support Continued Growth in Consumer Foods Business | Benzinga
ORRVILLE, Ohio, Sept. 27, 2023 /PRNewswire/ -- The J.M. Smucker Co. (NYSE:SJM) announced today it has entered into a definitive agreement to sell its Sahale Snacks® brand to Second Nature Brands, a U.S.-based creator of premium, nutritional and better-for-you snacks and treats. The all-cash transaction is valued at approximately $34 million, subject to a working capital adjustment. The transaction will include all trademarks and the Company's leased manufacturing facility in Seattle, Washington, including about 100 employees who will transition with the business.
"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 Chief Executive Officer, The J.M. Smucker Co. "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."
The Sahale Snacks® business generated net sales of approximately $48 million for the Company's fiscal year ended April 30, 2023, which were primarily reported in its U.S. Retail Consumer Foods segment.
The Company expects the impact of the divestiture to be immaterial to its adjusted earnings per share ...