ORRVILLE, Ohio, USA – The J.M. Smucker Co. (NYSE: SJM) (“Company”) announced today the closing of the transaction to divest its Cloverhill and Big Texas brands, as well as certain private label products, to JTM Foods, LLC (“JTM”).
The Company previously announced the signing of a definitive agreement for the transaction on January 31, 2025.
The all-cash transaction is valued at approximately $40 million, subject to a working capital adjustment, and includes relevant trademarks and licenses as well as the Company’s manufacturing facility in Chicago, Illinois along with approximately 400 employees who will also transition with the business.
The divestiture reflects the Company’s continued commitment to portfolio optimization and prioritization of resources in support of the Hostess brand to help advance its leadership in the sweet baked good category.
The decision reflects action on the key pillars the Company has established to return the Hostess brand to growth, including work to mitigate costs and reduce complexity within its manufacturing network.
The transaction is expected to impact fiscal year 2025 net sales by approximately $10 million and to be immaterial to full-year adjusted earnings per share.
The J.M. Smucker Co. maintains its fiscal year 2025 guidance as communicated in its most recent quarterly earnings announcement on February 27, 2025.
