The J.M. Smucker Co. Announces Agreement to Divest Sahale Snacks® Brand
The company intends to sharpen focus and support continued growth in consumer foods business
The J.M. Smucker Co. announced it has entered into a definitive agreement to sell its Sahale Snacks® brand to Second Nature Brands, a US-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, Washington, including about 100 employees who will transition with the business.
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The Sahale Snacks® business generated net sales of approximately $48 million for the company's fiscal year ended April 30, 2023, which were primarily reported in its US 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. Calfee, Halter & Griswold LLP is serving as the company's legal advisor in connection with the transaction.
www.jmsmucker.com
www.secondnaturebrandsus.com
www.sahalesnacks.com
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