Food acquisition news : US food manufacturer J.M. Smucker has agreed to offload its US baking business to subsidiaries of private equity firm Brynwood Partners for $375 million.

The deal mainly covers products sold across the US retail channels under the Pillsbury, Martha White, Jim Dandy, Hungry Jack and White Lily brands, alongside all relevant trademarks and licensing agreements, in addition to J.M. Smucker’s manufacturing plant in Toledo, Ohio.  Around 255 people are employed at the Toledo factory.

While Pillsbury and Hungry Jack are brands in the shelf-stable baking and breakfast segments, the Funfetti sub-brand is also included in the deal alongside regional brands White Lily, Jim Dandy and Martha White, which are into the flour, corn meal and grits segments.

The business earned net sales of around $370 million for the fiscal year ended 30 April, 2018, which were mainly reported in its US Retail Consumer Foods segment.

The deal does not include the J.M. Smucker’s baking business in Canada as per the latest food acquisition news.

Commenting on J.M. Smucker’s sale of its US baking business to Brynwood Partners, Mark Smucker – President and CEO, said: “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.

“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.  While the decision to divest these brands was difficult, it underscores our commitment to allocating resources toward those areas of the business critical to our growth.”

Brynwood Partners has created a new company called Hometown Food Company to acquire the assets from Smucker.  Hometown Food will be based in Chicago and will operate the Toledo factory.

Henk Hartong III – Chairman and CEO of Brynwood Partners, commenting on Brynwood Partners acquisition of the J.M. Smucker’s US baking business, said: “We are extremely pleased to announce the formation of the Hometown Food Company, which marks the single largest acquisition in Brynwood Partners’ 34-year history.

“We are excited to add the famous Pillsbury and Hungry Jack brands along with the White Lily, Jim Dandy and Martha White brands and their great tasting products to our investment portfolio.  The iconic portfolio of brands and the company’s strong Mid-Western manufacturing footprint will provide us with a solid platform to invest in and to grow.”

Brynwood Partners acquisition of the J.M. Smucker’s US baking business is anticipated to be completed in the third quarter of 2018 and will be based on meeting of customary closing conditions, including receipt of necessary regulatory approvals.

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  Bakery industry news, Brynwood Partners, Henk Hartong III, J.M. Smucker, Mark Smucker, USA