J.M. Smucker announces agreement to sell condiments brands to TreeHouse Foods

The J.M. Smucker (SJM) announced it has entered into a definitive agreement to sell its Bick’s pickles, Habitant pickled beets, Woodman’s horseradish and McLarens pickled onions brands to TreeHouse Foods (THS), a leading private label food and beverage manufacturer in North America. The all-cash transaction is valued at approximately $20M, subject to a working capital adjustment. The brands included in the transaction generated net sales of approximately $60M for the Company’s fiscal year ended April 30 which were reported in its International and Away From Home results. The Company expects the impact of the divestiture to be immaterial to its adjusted earnings per share on a full-year basis. The Company will provide additional information about the transaction’s impact on its fiscal year 2024 outlook during the next quarterly earnings call. The transaction is anticipated to close in the Q3 of the Company’s current fiscal year ending April 30, 2024, subject to customary closing conditions.