In support of its ongoing strategic focus on North America, The J.M. Smucker Company announced the sale of its Brazilian operations, Smucker do Brasil Ltda., to Cargill Inc.
The sale will generate net cash proceeds of approximately $8 million and result in a pre-tax loss of approximately $5.5 million, or $0.06 per share, which will be recorded by the company as part of its second quarter results. The Brazilian operations contributed approximately $11 million in sales to fiscal year 2004 results, while operating results were not material. Historical results have been included in the international business area of the company's special markets segment. The results of Smucker do Brasil, including the loss on the sale of the business, will be accounted for as a discontinued operation, and all prior periods will be restated.