Food manufacturer, The J.M. Smucker Co. has reached a definitive agreement to divest its Cloverhill and Big Texas brands, as well as certain private label products, to JTM Foods.
The all-cash transaction is valued at approximately $40 million, subject to a working capital adjustment, and includes relevant trademarks and licenses and the company’s manufacturing facility in Chicago, Illinois. Approximately 400 employees will also transition with the business.
“This divestiture reflects our continued commitment to portfolio optimization to prioritize resources to support the execution of our Sweet Baked Snacks strategy, focused on growing the Hostess® brand, and advancing our leadership in the sweet baked goods category,” said Dan O’Leary, Senior Vice President and General Manager, Sweet Baked Snacks and Pet.
“This decision continues the ongoing work to ensure our manufacturing network is optimized to mitigate costs and reduce complexity.”
For fiscal year 2025, the company anticipates full-year net sales from the divested value brands and private label products to be approximately $60 million.