ORRVILLE, OH — The J.M. Smucker Co. officially closed the transaction to divest its Cloverhill and Big Texas brands and a few private label products to JTM Foods. J.M. Smucker announced the signing of a definitive agreement for the transaction on January 31.
The all-cash deal is valued at approximately $40 million, subject to a working capital adjustment. The transaction includes relevant trademarks and licenses and J.M. Smucker’s manufacturing facility in Chicago, in addition to approximately 400 employees who will transition with the business.
The divestiture furthers the company’s commitment to portfolio optimization and prioritization of resources for the growth of its Hostess brand — which J.M. Smucker acquired at the tail end of 2023 — and advances its leadership in the sweet baked good category.
The transaction is expected to impact fiscal year 2025 net sales by approximately $10 million. The company maintains its fiscal year 2025 guidance as communicated in its most recent quarterly earnings announcement on February 27.
