Conagra Brands continues to adjust its portfolio and J. M. Smucker Co. continues to add to its holdings. So on May 30, Smucker announced it would buy the Wesson brand of edible oils from Conagra for $285 million.
Smucker called Wesson, which is more than 100 years old, a good complement, considering Smucker already owns the Crisco brand. The deal will be an all-cash transaction funded primarily with debt, although it carries an approximate $45 million expected tax benefit to the buyer.
Under the terms of the agreement, Conagra will continue to manufacture products sold under the Wesson brand and provide certain other transition services for up to one year. After the transition period, Smucker expects to consolidate Wesson production into its existing oils manufacturing facility in Cincinnati.
Smucker expects it to add annual sales of approximately $230 million.