B&G Foods to acquire Crisco shortening brand from Smucker’s for $550m
US-based branded foods company B&G Foods has agreed to acquire the Crisco brand of oils and shortening from The J.M. Smucker Co. (Smucker’s) for nearly $550 million in an all-cash deal.
As part of the deal, B&G Foods is also acquiring a manufacturing plant and warehouse located in Cincinnati, Ohio. The deal also includes Smucker’s oils and shortening business outside the US, which is mainly in Canada.
It will also see the transfer of nearly 160 employees who support the Crisco business.
Kenneth G. Romanzi – President and CEO of B&G Foods said: “Crisco is an excellent complement to our existing portfolio of brands, including our Clabber Girl and other baking powder brands. This acquisition is consistent with our longstanding acquisition strategy of targeting well-established brands with defensible market positions and strong cash flow at reasonable purchase price multiples.
“Crisco has a strong heritage, as the original all‑vegetable shortening that transformed the way people bake and cook over 100 years ago. Crisco is the number one brand of shortening, the number one brand of vegetable oil and also holds a leadership position in other cooking oils and cooking sprays.”
B&G Foods to acquire Crisco shortening brand from Smucker’s for $550m. Photo courtesy of Science History Institute/Wikipedia.org.
Smucker’s said that the sale of the Crisco business is in line with its previously announced plan to quit the US baking category and concentrate more of its resources on its key growth platforms of pet food, snacking, and coffee.
Mark Smucker – President and CEO of Smucker’s said: “Crisco is an iconic brand that is beloved by consumers, and the business has been a solid contributor to our financial performance.
“However, our strategic priorities include an increased focus and allocation of resources toward pet food and pet snacks, coffee, and snacking to maintain momentum in these categories. Today’s announcement helps position the Company to further grow our core businesses and unlock value for our shareholders.”
The deal is anticipated to close in Q4 2020, subject to receipt of regulatory approvals and meeting of other customary closing conditions.