The Supply Side briefs: J.M. Smucker to sell canned milk brand operations
by November 3, 2015 4:47 pm 200 views
J.M. Smucker, a longtime Wal-Mart supplier, announced plans to divest its canned milk operations to the Eagle Family Foods Group, owned by private equity firm Kelso & Company.
The transaction includes canned milk products such as “Eagle Brand” and “Magnolia” brands along with other private label trade names. This business had roughly $200 million in net sales last year, according to the release.
No sales price or terms were discussed in the release. The company said it will discuss the transaction’s impact on its full-year fiscal 2016 outlook when it releases its fiscal 2016 second quarter results on Nov. 19. The transaction is expected to close by the end of calendar 2015, if approved by antitrust regulators.
Smucker, based in Orrville, Ohio, said the deal does include manufacturing facilities in Seneca, Mo., and El Paso, Texas, but not the canned milk business in Canada.
Smucker has a sales office in Northwest Arkansas, and it’s likely that the local staff will be paired down following the closing of this deal, according to vendor experts.