The J. M. Smucker Co., Orrville, Ohio, on Nov. 3 stated it has entered into a definitive agreement to sell its U.S. canned milk brands and production operations to Eagle Family Foods Group LLC, Gahanna, Ohio, a subsidiary of funds affiliated with Kelso & Co.
The transaction includes canned milk products that are primarily sold in U.S. retail and foodservice channels under the Eagle Brand and Magnolia brands, along with other branded and private-label trade names, with annual net sales of approximately $200 million, Smucker said.
Smucker acquired the brands in 2007. Expected to close by the end of the 2015 calendar year, the deal includes manufacturing facilities in El Paso, Texas and Seneca, Mo., but not Smucker's canned milk business in Canada.
Additional terms and conditions of the transaction were not released. The company said that it will discuss the transaction's impact on its full-year fiscal 2016 outlook when it releases its fiscal 2016 second quarter results on November 19.