J.M. Smucker to Divest Fermented Condiments for $20 Million

The J.M. Smucker 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, a leading private label food and beverage manufacturer in North America. The all-cash transaction is valued at approximately $20 million USD.

These brands generated net sales of approximately $60 million USD for the company's fiscal year that ended April 30, 2023, which were reported in its International and Away From Home results.

"This decision will allow us to enhance focus on growing our position in the coffee, spreads, frozen handheld and pet categories in Canada with leading and emerging brands such as Folgers, Smucker's, Jif, Smucker's Uncrustables, Meow Mix, and Milk-Bone, and supporting continued leadership in the baking category with our Robin Hood, Five Roses, Carnation, and Eagle Brand brands," said Tim Wayne, sr. vice president and general manager, Away From Home, Canada and International. "On behalf of the organization, I would like to extend our appreciation to the employees who have worked diligently to support these brands, which have played an important role in our Canadian portfolio."

J.M. Smucker expects the impact of the divestiture to be immaterial to its adjusted earnings per share on a full-year basis. 

"This acquisition of assets is consistent with our strategy and enhances TreeHouse Foods' depth in our growing pickles category, allowing us to expand into Canada and thus positioning TreeHouse for continued success," said Steve Oakland, chairman, chief executive officer, and president of TreeHouse Foods. "We have had a co-packing arrangement with Bick's pickles for many years, and we are pleased to integrate this business with our manufacturing network."

The transaction is anticipated to close in the third quarter of J.M. Smucker's current fiscal year ending April 30, 2024.