ORRVILLE, Ohio, July 9, 2018 /PRNewswire/ -- The J. M. Smucker
Company (NYSE: SJM) (the "Company") announced today the signing of
a definitive agreement to sell its U.S. baking business to Brynwood
Partners VII L.P. and Brynwood Partners VIII L.P., subsidiaries of
Brynwood Partners, in a transaction valued at $375 million. The transaction primarily
encompasses products sold in U.S. retail channels under the
Pillsbury®, Martha
White®, Hungry Jack®,
White Lily®, and Jim
Dandy® brands, along with all relevant
trademarks and licensing agreements, and the Company's
manufacturing facility in Toledo,
Ohio. This business generated net sales of approximately
$370 million for the Company's fiscal
year ended April 30, 2018, which were
primarily reported in its U.S. Retail Consumer Foods segment.
The transaction does not include the Company's baking business in
Canada.
"The divestiture reflects our strategy to further focus our
portfolio and develop a stronger presence in pet food, coffee, and
snacking — all large, growing categories with sustainable growth
projections," said Mark Smucker,
President and Chief Executive Officer.
"Pillsbury®, Martha
White®, and Hungry Jack®
remain iconic brands and, although they no longer align with our
strategic priorities, we are confident they will be nurtured at
Brynwood. While the decision to divest these brands was
difficult, it underscores our commitment to allocating resources
toward those areas of the business critical to our growth."
The Company expects the divestiture to be dilutive to its
adjusted earnings per share by $0.25
to $0.30 on a full-year basis,
reflecting foregone profit related to the U.S. baking business,
before factoring in any potential benefit from the use of proceeds
from the sale. However, the Company expects the net impact of
the divestiture to be only slightly dilutive to its fiscal 2019
adjusted earnings per share, as foregone profit for the remainder
of the fiscal year is expected to be mostly offset by an
anticipated one-time gain on divestiture. This expectation
also excludes any potential benefit from the use of proceeds from
the sale. The Company will further discuss the transaction's
anticipated impact on its fiscal 2019 outlook when it releases its
fiscal 2019 first quarter results in August.
The transaction is expected to close in the second quarter of
the Company's 2019 fiscal year, subject to customary closing
conditions, including receipt of required regulatory
approvals.
The J. M. Smucker Company Forward-Looking
Statements
This press release contains forward-looking
statements that are subject to risks and uncertainties that could
cause actual results to differ materially from future results
expressed or implied by those forward-looking statements. The
risks, uncertainties, important factors, and assumptions listed and
discussed in this press release, which could cause actual results
to differ materially from those expressed, include: the ability to
successfully complete the divestiture of the Company's U.S. baking
business in a timely and cost-effective manner; the ability to
achieve cost savings related to the Company's synergy and cost
management programs in the amounts and within the time frames
currently anticipated; the ability to generate sufficient cash flow
to meet the Company's cash deleveraging objectives; the timing and
amount of capital expenditures and share repurchases; and risks
related to other factors described under "Risk Factors" in other
reports and statements filed with the Securities and Exchange
Commission, including the Company's most recent Annual Report on
Form 10-K. The Company undertakes no obligation to update or revise
these forward-looking statements, which speak only as of the date
made, to reflect new events or circumstances.
About The J. M. Smucker Company
For more than 120
years, The J. M. Smucker Company has brought families together to
share memorable meals and moments. Guided by a vision to
engage, delight, and inspire consumers through trusted food and
beverage brands that bring joy throughout their lives, Smucker has
grown to be a well-respected North American marketer and
manufacturer with a balanced portfolio of leading and emerging,
on-trend brands. In consumer foods and beverages, its brands
include Smucker's®, Folgers®,
Jif®, Dunkin'
Donuts®, Crisco®, Café
Bustelo®, R.W. Knudsen Family®,
Sahale Snacks®, Smucker's®
Uncrustables®, Robin
Hood®, and Bick's®.
In pet food and pet snacks, its brands include
Rachael Ray®
Nutrish®, Meow Mix®,
Milk-Bone®, Kibbles 'n Bits®, Natural
Balance®, and Nature's Recipe®.
The Company remains rooted in the Basic Beliefs of
Quality, People, Ethics, Growth, and Independence
established by its founder and namesake more than a century ago.
For more information about our Company, visit
jmsmucker.com.
The J. M. Smucker Company is the owner of all
trademarks referenced herein, except for the following, which
are used under license: Pillsbury® is a
registered trademark of The Pillsbury Company, LLC, Dunkin' Donuts® is a
registered trademark of DD IP Holder LLC, and Rachael Ray® is a registered
trademark of Ray Marks Co. LLC.
Dunkin'
Donuts® brand is licensed to The J. M. Smucker
Company for packaged coffee products sold in retail channels such
as grocery stores, mass merchandisers, club stores, and drug
stores. This information does not pertain to Dunkin' Donuts® coffee or other
products for sale in Dunkin'
Donuts® restaurants.
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SOURCE The J. M. Smucker Company