ORRVILLE, Ohio — The J.M. Smucker Co. announced Wednesday that it has entered into a definitive agreement to sell its Sahale Snacks brand to Second Nature Brands, a U.S.-based creator of premium, nutritional and better-for-you snacks and treats.
The all-cash transaction is valued at approximately $34 million, subject to a working capital adjustment. The transaction will include all trademarks and the company's leased manufacturing facility in Seattle, including about 100 employees who will transition with the business.
"This divestiture reflects our continued commitment to portfolio and resource optimization to sharpen our focus and support continued growth," said Smucker Chairman, President and CEO Mark Smucker. "The divestiture of the Sahale Snacks brand will support continued growth in our consumer foods business with enhanced investment in our Smucker's Uncrustables brand and building on our leadership in spreads. As always, any decision that impacts our employees is only made after careful consideration and I want to thank all who have supported this brand, which has played an important role in our consumer foods portfolio."
The Sahale Snacks business generated net sales of approximately $48 million for the company's fiscal year ended April 30, which were primarily reported in its U.S. retail consumer foods segment.
The company expects the impact of the divestiture to be immaterial to its adjusted earnings per share on a full-year basis. The company will provide additional information about the transaction's impact on its fiscal year 2024 outlook during the next quarterly earnings call.
The transaction is anticipated to close in the third quarter of the company's current fiscal year ending April 30, 2024, subject to customary closing conditions.
