J.M. Smucker Co. selling Crisco brand to Green Giant and Cream of Wheat owner for $550 million
The J.M. Smucker Co. is cutting out the fat from its food holdings.
The Orrville, Ohio-based company will sell its Crisco brand to the owner of Green Giant and other well-known food-related brands for $550 million in a cash deal, it announced Monday. The buyer is New Jersey-based B&G Foods Inc., which owns more than 50 brands including Ortega, SnackWells, Weber, B&M, Emeril's, Polaner and Cream of Wheat.
The divestiture of Crisco and related oils and shortening products is in line with Smucker's previously announced goal of exiting the U.S. baking category to focus on pet food, coffee and snacks, the company said. The move impacts Crisco manufacturing and warehousing facilities in Cincinnati and about 160 employees, the company said in its news release.
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Crisco generated about $270 million in sales for Smucker's 2020 fiscal year that ended April 30. The transaction, expected to close in the company's third-quarter pending regulatory and other approvals, includes Smucker's oils and shortening business outside the U.S., primarily in Canada.
“Crisco is an iconic brand that is beloved by consumers, and the business has been a solid contributor to our financial performance,” Mark Smucker, president and chief executive officer, said in the release. “However, our strategic priorities include an increased focus and allocation of resources toward pet food and pet snacks, coffee, and snacking to maintain momentum in these categories. Today’s announcement helps position the company to further grow our core businesses and unlock value for our shareholders.”
The company said it will further discuss how the sale will impact Smucker's 2021 fiscal year when it releases second-quarter results in November.
B&G Foods also issued a news release Monday about the move.
“We are very excited to add the iconic Crisco brand to the B&G Foods portfolio,” Kenneth G. Romanzi, B&G Foods president and CEO, said in the release. “Crisco is an excellent complement to our existing portfolio of brands, including our Clabber Girl and other baking powder brands."
Romanzi said Crisco is the No. 1 brand of shortening and vegetable oil as well as a leader in other cooking oils and sprays.
"This acquisition is consistent with our longstanding acquisition strategy of targeting well-established brands with defensible market positions and strong cash flow at reasonable purchase price multiples," Romanzi said. "Crisco has a strong heritage, as the original all‑vegetable shortening that transformed the way people bake and cook over 100 years ago."
Contributing: Kelly Tyko, USA TODAY
Follow reporter Jim Mackinnon on Twitter: @JimMackinnonABJ.
This article originally appeared on Akron Beacon Journal: JM Smucker to sell Crisco to B&G Foods for $550 million
