J. M. Smucker Co.'s U.S. baking business – essentially the former Pillsbury – will be sold to two subsidiaries of Brynwood Partners for a value of $375 million, it was announced July 9. Smucker had been publicly shopping the businesses since at least the start of this year.
The transaction primarily includes products sold in U.S. retail channels under the Pillsbury, Martha White, Hungry Jack, White Lily and Jim Dandy brands. Also included are trademarks and licensing agreements and the business' manufacturing facility in Toledo, Ohio.
The unit generated sales of approximately $370 million in Smucker's fiscal year ended April 30. The transaction does not include Smucker's baking business in Canada.
General Mills bought its crosstown rival Pillsbury in 2001 and was forced to divest many of the baking products to International Multifoods Corp., which was later acquired by Smucker.
"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/CEO. "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."
