J.M. Smucker divests more brands to focus on Hostess

J.M. Smucker reaches a definitive agreement to divest its Cloverhill and Big Texas brands, as well as certain private label products, to JTM Foods. The all-cash transaction is valued at approximately US$40 million. Approx. 400 employees including the ones in the company’s manufacturing facility in Chicago, Ill., will also transition with the business.

“This divestiture reflects our continued commitment to portfolio optimization to prioritize resources to support the execution of our sweet baked snacks strategy, focused on growing the Hostess brand, and advancing our leadership in the sweet baked goods category,” said Dan O’Leary, senior vice-president and general manager, sweet baked snacks and pet. “This decision continues the ongoing work to ensure our manufacturing network is optimized to mitigate costs and reduce complexity.”

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