Smucker completes $375m sale of US baking business to Brynwood Partners

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

The sale of the baking business by the US food processing company was done to focus on the pet food, coffee, and snacking categories. A definitive agreement between J.M. Smucker and Brynwood Partners for the sale of the baking business was signed in July 2018.

Through the transaction, J.M. Smucker has transferred ownership of the Pillsbury, Martha White, Jim Dandy, Hungry Jack and White Lily brands that are sold in the US retail channels along with their relevant trademarks and licensing agreements to Brynwood Partners. It has also transferred ownership of its manufacturing plant in Toledo, Ohio with nearly 255 employees to the private equity firm.

J.M. Smuckers location in Canada. Photo courtesy of Raysonho @ Open Grid Scheduler / Grid Engine.

Brynwood Partners had formed a new company named Hometown Food Company to buy the assets from J.M. Smucker. Hometown Food Company, which is headquartered in Chicago, will also manage the Toledo factory.

Pillsbury and Hungry Jack brands belong to the shelf-stable baking and breakfast segments while the Funfetti sub-brand is also part of the sale along with regional brands such as White Lily, Jim Dandy and Martha White, which make products for the flour, corn meal and grits segments.

In May, J. M. Smucker wrapped up a major transaction by acquiring Ainsworth Pet Nutrition for around $1.7 billion.

Ainsworth manufactures pet food and pet snacks, mainly within the US with its main pet food brand being Rachael Ray Nutrish.

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