ORRVILLE, OH — The J.M. Smucker Co. announced plans to divest its Cloverhill and Big Texas brands as well as some private label products to JTM Foods.
The all-cash $40 million transaction includes relevant trademarks and licenses as well as the company’s Chicago manufacturing facility. Approximately 400 employees will transition with this business move. The transaction is expected to close in Q4 of J.M. Smucker’s fiscal year ending April 30.
“This divestiture reflects our continued commitment to portfolio optimization to prioritize resources to support the execution of our Sweet Baked Snacks strategy, focused on growing the Hostess brand, and advancing our leadership in the sweet baked goods category,” said Dan O’Leary, SVP and general manager, Sweet Baked Snacks and Pet for The J.M. Smucker Co. “This decision continues the ongoing work to ensure our manufacturing network is optimized to mitigate costs and reduce complexity.”
Cloverhill, Big Texas and private label products included in the deal generated $30 million in net sales at the end of J.M. Smucker’s fiscal year on April 30, 2024. This figure represents only part of the net sales reported in the segment following the November 2023 acquisition of Hostess. In 2025, the company anticipates full net sales for these divested assets to be approximately $60 million.
In July 2024, the company announced plans to divest the Voortman brand, which was later acquired by Second Nature Brands.
