ORRVILLE, Ohio, Oct. 22,
2024 /CNW/ -- The J.M. Smucker Co. (NYSE: SJM)
announced today it has entered into a definitive agreement to sell
its Voortman® cookie brand to Second Nature Brands, a
U.S.-based creator of premium snacks and treats controlled by
CapVest Partners LLP. The all-cash transaction is valued at
approximately $305 million, subject
to a working capital adjustment. The decision reflects the
Company's continued commitment to optimize its portfolio and
reallocate resources to its core growth brands.
The transaction includes all Voortman® trademarks and the
Company's leased manufacturing facility in Burlington, Ontario, Canada. In addition,
approximately 300 employees will transition with the business.
"This decision reflects our continued commitment to portfolio
and resource optimization to focus on our largest growth
opportunities as a Company," said Mark
Smucker, Chair of the Board, President and Chief Executive
Officer. "The divestiture of the Voortman® brand is an
important step in our integration plans that will enable the
execution of our Sweet Baked Snacks strategy through dedicated
focus and ongoing investments in the Hostess® brand,
advancing our leadership in the sweet baked goods category. I want
to recognize and thank the many talented teams who have supported
this brand."
The Company also confirmed continued progress on the integration
of Hostess Brands, including the successful completion of systems
integration earlier this month, and that it remains on track to
achieve expected synergies of $100
million from the acquisition by the end of fiscal year
2026.
The Voortman® brand generated net sales of approximately
$65 million for the Company's fiscal
year ended April 30, 2024, which
represents a partial year of net sales reported in its Sweet Baked
Snacks segment results following its acquisition on November 7, 2023. For fiscal year 2025, the
Company anticipates full-year net sales from the Voortman®
brand to be approximately $150
million.
The Company expects the divestiture to be dilutive to its
adjusted earnings per share by approximately $0.25 on a full-year basis, reflecting the
foregone profit related to the Voortman® brand and
before factoring in any benefits from the use of transaction
proceeds. The Company anticipates using the net proceeds from the
transaction to pay down debt, which will contribute an earnings per
share benefit of approximately $0.10
on a full-year basis. The Company will further discuss the
transaction's impact on its fiscal year 2025 outlook when it
releases its second quarter results.
The transaction is anticipated to close in the third quarter of
the Company's current fiscal year ending April 30, 2025, subject to customary closing
conditions including the receipt of required regulatory approvals.
Goldman Sachs & Co., LLC is serving as the Company's financial
advisor, and Blake, Cassels & Graydon LLP is serving as the
Company's legal advisor in connection with the transaction.
The J.M. Smucker Co. Forward Looking Statements
This press release ("Release") includes certain forward-looking
statements within the meaning of federal securities laws. The
forward-looking statements may include statements concerning our
current expectations, estimates, assumptions and beliefs concerning
future events, conditions, plans and strategies that are not
historical fact. Any statement that is not historical in nature is
a forward-looking statement and may be identified by the use of
words and phrases such as "expect," "anticipate," "believe,"
"intend," "will," "plan," "strive" and similar phrases. Federal
securities laws provide a safe harbor for forward-looking
statements to encourage companies to provide prospective
information. We are providing this cautionary statement in
connection with the safe harbor provisions. Readers are cautioned
not to place undue reliance on any forward-looking statements,
which speak only as of the date made, when evaluating the
information presented in this Release, as such statements are by
nature subject to risks, uncertainties and other factors, many of
which are outside of our control and could cause actual results to
differ materially from such statements and from our historical
results and experience. These risks and uncertainties include, but
are not limited to, the following: uncertainties relating to the
timing of the consummation of the sale of the Voortman®
brand to Second Nature Brands (the "Transaction"); the possibility
that any or all of the conditions to the consummation of the
Transaction may not be satisfied or waived, including the
failure to receive required regulatory approvals; the effect of the
announcement or pendency of the Transaction on the Company's
ability to retain key personnel and to maintain relationships with
customers, suppliers and other business partners; risks relating to
potential diversion of management's attention from the Company's
ongoing business operations; and those described under "Risk
Factors" in reports and statements filed by the Company with the
U.S. Securities and Exchange Commission. We do not undertake any
obligation to update or revise these forward-looking statements to
reflect new events or circumstances.
About The J.M. Smucker Co.
At The J.M. Smucker Co., it is our privilege to make food people
and pets love by offering a diverse family of brands available
across North America. We are proud
to lead in the coffee, peanut butter, fruit spreads, frozen
handheld, sweet baked goods, dog snacks, and cat food categories by
offering brands consumers trust for themselves and their families
each day, including Folgers®, Dunkin'®, Café Bustelo®,
Jif®, Uncrustables®, Smucker's®,
Hostess®,
Milk-Bone®, and Meow
Mix®. Through our unwavering commitment to producing
quality products, operating responsibly and ethically and
delivering on our Purpose, we will continue to grow our business
while making a positive impact on society. For more information,
please visit jmsmucker.com.
The J.M. Smucker Co. is the owner of all trademarks referenced
herein, except for Dunkin'®, which is a trademark
of DD IP Holder LLC. The Dunkin'® brand is licensed
to The J.M. Smucker Co. for packaged coffee products sold in retail
channels such as grocery stores, mass merchandisers, club stores,
e-commerce and drug stores, and in certain away from home channels.
This information does not pertain to products for sale
in Dunkin'®
restaurants.
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SOURCE The J.M. Smucker Co.
