The J.M. Smucker Company announced that it intends to divest International Multifoods' U.S. foodservice and bakery products businesses. These businesses were reported as the Foodservice Products Segment by Multifoods.
Smucker says its strategy is to own and market leading North American icon brands sold in the center of the store. With the acquisition of Multifoods, the company added what it considers an outstanding array of brands, which are complementary to the existing Smucker brands.
However, the U.S. foodservice and bakery products businesses acquired with Multifoods are not aligned with Smucker's foodservice strategy, and as such, the decision has been made to divest this non-strategic business segment.
For Multifoods' 2004 fiscal year ended February 28, 2004, the Foodservice Products Segment had net sales of $202.5 million. These products are manufactured in eight North American facilities.