Smucker’s Sells Cloverhill, Big Texas, and Private Label Brands to Optimize Sweet Baked Snacks Portfolio “`

6175837db158f839ebc41a225bf3b50b The J.M. Smucker Co. Announces Agreement to Divest Certain Value Brands in Continued Portfolio Optimization of Sweet Baked Snacks Segment

ORRVILLE, Ohio, January 31, 2025 — J.M. Smucker Co. (NYSE: SJM) has agreed to sell its Cloverhill and Big Texas brands, along with certain private label products, to JTM Foods, LLC. This cash sale, valued at roughly $40 million (plus a working capital adjustment), includes related trademarks, licenses, and the company’s Chicago, Illinois production facility. Around 400 employees will transfer with the business.

According to Dan O’Leary, Senior Vice President and General Manager, Sweet Baked Snacks and Pet, this divestiture supports the company’s strategy to focus resources on the Hostess® brand and strengthen its position in sweet baked goods. This move, he added, is part of ongoing efforts to streamline operations and lower costs.

The divested brands and private label products generated approximately $30 million in net sales during the fiscal year ending April 30, 2024 (reflecting a partial year within the Sweet Baked Snacks segment following their acquisition on November 7, 2023). Fiscal year 2025 net sales from these assets are projected at approximately $60 million.

The company expects this sale to have a negligible effect on its adjusted earnings per share. The net proceeds will be used to reduce debt. Further details on the transaction’s impact (expected to be immaterial to the fiscal year 2025 outlook) will be released with the third-quarter results.

The transaction is expected to close in the fourth quarter of fiscal year 2025 (ending April 30, 2025). RBC Capital Markets, LLC, is acting as the company’s financial advisor, and Benesch, Friedlander, Coplan & Aronoff LLP is providing legal counsel.

The J.M. Smucker Co. Forward Looking Statements

This press release contains forward-looking statements, as defined by federal securities laws. These statements reflect current expectations, estimates, assumptions, and beliefs about future events, conditions, plans, and strategies, and are not historical facts. Forward-looking statements may be identified by words like “expect,” “anticipate,” “believe,” “intend,” “will,” “plan,” “strive,” and similar terms. These statements are inherently uncertain and subject to various risks and factors beyond the company’s control, which could cause actual results to differ materially. These risks include, but are not limited to, uncertainties about the timing of the sale to JTM; the possibility that conditions for the sale may not be met or waived; and those detailed in the company’s filings with the U.S. Securities and Exchange Commission. The company does not undertake to update these statements.

About The J.M. Smucker Co.

The J.M. Smucker Co. produces a variety of food and pet food brands across North America. The company holds leading positions in coffee, peanut butter, fruit spreads, frozen handheld foods, sweet baked goods, dog snacks, and cat food, with trusted brands such as Folgers®, Dunkin’®, Café Bustelo®, Jif®, Smucker’s® Uncrustables®, Smucker’s®, Hostess®, Milk-Bone®, and Meow Mix®. The company is committed to quality products, responsible operations, and positive societal impact.

The J.M. Smucker Co. owns all trademarks referenced here, except for Dunkin’® (a trademark of DD IP Holder LLC). The Dunkin’® brand is licensed to The J.M. Smucker Co. for packaged coffee products sold in retail channels. This does not apply to products sold in Dunkin’® restaurants.

(PRNewsfoto/The J.M. Smucker Co.)

SOURCE The J.M. Smucker Co.

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