J.M. Smucker is offloading the Pillsbury Doughboy and different baking manufacturers.
The corporate — identified for merchandise like Smucker’s jam, Jif peanut butter and Folgers espresso — introduced Monday that it might promote its baking enterprise to personal fairness agency Brynwood Companions for $375 million.
The deal contains the Pillsbury, Hungry Jack, Martha White, White Lily and Jim Dandy manufacturers, Smucker ( mentioned in an announcement. )
The transfer comes throughout a interval of turmoil for large meals manufacturers, that are dealing with challenges navigating buyers’ altering tastes.
Smucker’s CEO, Mark Smucker, mentioned promoting the baking enterprise will assist the greater than 120-year-old firm give attention to bolstering its pet meals, espresso and snack choices.
“Whereas the choice to divest these manufacturers was tough, it underscores our dedication to allocating assets towards these areas of the enterprise essential to our progress,” he mentioned.
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The Pillsbury Doughboy, initially generally known as Poppin’ Contemporary, first appeared in TV commercials greater than 50 years in the past.
The Pillsbury baking merchandise Brynwood is getting its fingers on embrace flour, dry baking mixes and ready-to-spread frosting.
Not like the opposite manufacturers Brynwood is shopping for from Smucker, Pillsbury is licensed from Common Mills (. )
The deal features a 650,000-square-foot manufacturing plant in Toledo, Ohio, Brynwood mentioned in an announcement.
“The long-lasting portfolio of manufacturers and the corporate’s robust Mid-Western manufacturing footprint will present us with a strong platform to put money into and to develop,” mentioned Brynwood CEO Henk Hartong III.
The agency already owns a number of manufacturers acquainted to grocery buyers, together with the maker of SunnyD and Juicy Juice.
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It is the newest in a sequence of offers within the meals business.
Nestle ( mentioned in January it was promoting practically $three billion value of its US sweet manufacturers, together with Butterfinger, BabyRuth and Nerds, to Ferrero, the maker of Nutella. )
And late final month, ConAgra Manufacturers (, the maker of Chef Boyardee and Orville Redenbacher’s, introduced it was shopping for )Pinnacle Meals (, the guardian firm of Birds Eye and Duncan Hines, in a deal value practically $11 billion. )
CNNMoney (New York) First printed July 9, 2018: 11:20 PM ET