The J.M. Smucker Co. Announces Agreement to Divest Voortman® Brand as Part of Continued Portfolio Optimization
The J.M. Smucker Co. (NYSE: SJM) has announced an agreement to sell its Voortman® cookie brand to Second Nature Brands for approximately $305 million in cash. This divestiture is part of Smucker's strategy to optimize its portfolio and focus on core growth brands. The deal includes all Voortman® trademarks, a leased manufacturing facility in Burlington, Ontario, and the transition of about 300 employees.
The company expects the sale to be dilutive to adjusted earnings per share by approximately $0.25 on a full-year basis. However, using the proceeds to pay down debt is anticipated to contribute an EPS benefit of about $0.10. The transaction is expected to close in the third quarter of Smucker's fiscal year 2025, subject to regulatory approvals.
Smucker also confirmed progress on the Hostess Brands integration, including completed systems integration, and remains on track to achieve $100 million in synergies by the end of fiscal year 2026.
La J.M. Smucker Co. (NYSE: SJM) ha annunciato un accordo per vendere il suo marchio di biscotti Voortman® a Second Nature Brands per circa 305 milioni di dollari in contante. Questa dismissione fa parte della strategia di Smucker per ottimizzare il proprio portafoglio e concentrarsi sui marchi principali in crescita. L'accordo comprende tutti i marchi registrati Voortman®, uno stabilimento di produzione in affitto a Burlington, Ontario, e il passaggio di circa 300 dipendenti.
L'azienda prevede che la vendita si tradurrà in un effetto diluitivo sugli utili per azione rettificati di circa 0,25 dollari su base annuale. Tuttavia, l'uso del ricavato per ridurre il debito dovrebbe contribuire a un beneficio EPS di circa 0,10 dollari. Si prevede che la transazione si concluda nel terzo trimestre dell'anno fiscale 2025 di Smucker, soggetto ad approvazioni normative.
Smucker ha anche confermato progressi nell'integrazione di Hostess Brands, compresa l'integrazione dei sistemi completata, e rimane in carreggiata per raggiungere 100 milioni di dollari in sinergie entro la fine dell'anno fiscale 2026.
La J.M. Smucker Co. (NYSE: SJM) ha anunciado un acuerdo para vender su marca de galletas Voortman® a Second Nature Brands por aproximadamente 305 millones de dólares en efectivo. Esta desinversión es parte de la estrategia de Smucker para optimizar su cartera y centrarse en las marcas de crecimiento clave. El acuerdo incluye todas las marcas registradas de Voortman®, una planta de fabricación arrendada en Burlington, Ontario, y la transición de aproximadamente 300 empleados.
La compañía espera que la venta tenga un efecto dilutivo en las ganancias por acción ajustadas de aproximadamente 0,25 dólares en base anual. Sin embargo, se anticipa que el uso del ingreso para reducir la deuda contribuirá con un beneficio EPS de alrededor de 0,10 dólares. Se espera que la transacción se cierre en el tercer trimestre del año fiscal 2025 de Smucker, sujeto a aprobaciones regulatorias.
Smucker también confirmó avances en la integración de Hostess Brands, incluida la integración de sistemas completada, y se mantiene en camino de lograr 100 millones de dólares en sinergias para finales del año fiscal 2026.
J.M. Smucker Co. (NYSE: SJM)는 Voortman® 쿠키 브랜드를 Second Nature Brands에 약 3억 500만 달러에 현금으로 판매하는 계약을 발표했습니다. 이번 매각은 Smucker의 포트폴리오를 최적화하고 핵심 성장 브랜드에 집중하기 위한 전략의 일환입니다. 이 거래에는 모든 Voortman® 상표, 온타리오주 벌링턴에 위치한 임대 제조 시설, 약 300명의 직원 전환이 포함됩니다.
회사는 이번 판매로 인해 연간 기준으로 조정 후 주당 순이익이 약 0.25달러 감소할 것이라고 예상하고 있습니다. 그러나 부채 상환에 수익금을 사용할 경우 약 0.10달러의 EPS 이익을 기여할 것으로 보입니다. 거래는 Smucker의 2025 회계연도 3분기 내에 마무리될 것으로 예상되며, 규제 당국의 승인이 필요합니다.
Smucker는 또한 Hostess Brands 통합에 대한 진행 사항을 확인했으며, 시스템 통합이 완료되었고 2026 회계연도 말까지 1억 달러의 시너지를 달성할 것으로 예상하고 있습니다.
La J.M. Smucker Co. (NYSE: SJM) a annoncé un accord pour vendre sa marque de biscuits Voortman® à Second Nature Brands pour environ 305 millions de dollars en espèces. Cette désinvestissement fait partie de la stratégie de Smucker pour optimiser son portefeuille et se concentrer sur ses marques de croissance principales. L'accord comprend toutes les marques déposées Voortman®, une installation de fabrication louée à Burlington, en Ontario, et le transfert d'environ 300 employés.
L'entreprise s'attend à ce que la vente ait un effet dilutif sur les bénéfices ajustés par action d'environ 0,25 dollar sur une base annuelle. Cependant, il est prévu que l'utilisation des produits de la vente pour réduire la dette contribuera à un bénéfice EPS d'environ 0,10 dollar. La transaction devrait être finalisée au troisième trimestre de l'exercice 2025 de Smucker, sous réserve des approbations réglementaires.
Smucker a également confirmé des avancées dans l'intégration des marques Hostess, y compris l'intégration des systèmes achevée, et reste sur la bonne voie pour atteindre 100 millions de dollars de synergies d'ici la fin de l'exercice 2026.
Die J.M. Smucker Co. (NYSE: SJM) hat eine Vereinbarung bekannt gegeben, ihre Voortman® Keksmarke für etwa 305 Millionen Dollar in bar an Second Nature Brands zu verkaufen. Diese Veräußerung ist Teil der Strategie von Smucker, sein Portfolio zu optimieren und sich auf zentrale Wachstumsmarken zu konzentrieren. Der Deal umfasst alle Voortman®-Markenrechte, ein angemietetes Produktionswerk in Burlington, Ontario, und den Übergang von etwa 300 Mitarbeitern.
Das Unternehmen erwartet, dass der Verkauf den bereinigten Gewinn pro Aktie um etwa 0,25 Dollar verwässern wird auf Jahresbasis. Es wird jedoch erwartet, dass die Verwendung des Erlöses zur Tilgung von Schulden einen EPS-Vorteil von etwa 0,10 Dollar bringen wird. Die Transaktion soll im dritten Quartal des Geschäftsjahres 2025 von Smucker abgeschlossen werden, vorbehaltlich der Genehmigung durch die Regulierungsbehörden.
Smucker bestätigte auch Fortschritte bei der Integration von Hostess Brands, einschließlich der abgeschlossenen Systemintegration, und bleibt auf Kurs, bis Ende des Geschäftsjahres 2026 100 Millionen Dollar an Synergien zu erreichen.
- Sale of Voortman® brand for $305 million, aligning with portfolio optimization strategy
- Successful completion of Hostess Brands systems integration
- On track to achieve $100 million in synergies from Hostess acquisition by end of fiscal year 2026
- Proceeds from sale to be used for debt reduction, contributing $0.10 EPS benefit annually
- Divestiture expected to be dilutive to adjusted EPS by $0.25 on a full-year basis
- Loss of approximately $150 million in annual net sales from Voortman® brand
Insights
This divestiture of the Voortman® brand for
- Estimated
$150 million in full-year net sales from Voortman® for fiscal 2025 - Dilution of approximately
$0.25 to adjusted EPS on a full-year basis - Partial offset by
$0.10 EPS benefit from debt reduction using proceeds
The company's focus on the Hostess® brand and sweet baked goods category aligns with its growth strategy. The successful systems integration and progress towards
This divestiture reflects a broader trend in the consumer goods industry of streamlining portfolios to focus on high-growth, core brands. For SJM, the decision to sell Voortman® and double down on Hostess® indicates a strategic bet on the latter's stronger market position and growth potential in the sweet baked goods category. The
- How SJM leverages the Hostess® brand to capture market share
- The company's ability to achieve the projected
$100 million in synergies - Potential for further portfolio optimization moves
While the short-term EPS impact is slightly negative, the long-term strategy could yield stronger, more focused growth if executed well.
The transaction includes all Voortman® trademarks and the Company's leased manufacturing facility in
"This decision reflects our continued commitment to portfolio and resource optimization to focus on our largest growth opportunities as a Company," said Mark Smucker, Chair of the Board, President and Chief Executive Officer. "The divestiture of the Voortman® brand is an important step in our integration plans that will enable the execution of our Sweet Baked Snacks strategy through dedicated focus and ongoing investments in the Hostess® brand, advancing our leadership in the sweet baked goods category. I want to recognize and thank the many talented teams who have supported this brand."
The Company also confirmed continued progress on the integration of Hostess Brands, including the successful completion of systems integration earlier this month, and that it remains on track to achieve expected synergies of
The Voortman® brand generated net sales of approximately
The Company expects the divestiture to be dilutive to its adjusted earnings per share by approximately
The transaction is anticipated to close in the third quarter of the Company's current fiscal year ending April 30, 2025, subject to customary closing conditions including the receipt of required regulatory approvals. Goldman Sachs & Co., LLC is serving as the Company's financial advisor, and Blake, Cassels & Graydon LLP is serving as the Company's legal advisor in connection with the transaction.
The J.M. Smucker Co. Forward Looking Statements
This press release ("Release") includes certain forward-looking statements within the meaning of federal securities laws. The forward-looking statements may include statements concerning our current expectations, estimates, assumptions and beliefs concerning future events, conditions, plans and strategies that are not historical fact. Any statement that is not historical in nature is a forward-looking statement and may be identified by the use of words and phrases such as "expect," "anticipate," "believe," "intend," "will," "plan," "strive" and similar phrases. Federal securities laws provide a safe harbor for forward-looking statements to encourage companies to provide prospective information. We are providing this cautionary statement in connection with the safe harbor provisions. Readers are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date made, when evaluating the information presented in this Release, as such statements are by nature subject to risks, uncertainties and other factors, many of which are outside of our control and could cause actual results to differ materially from such statements and from our historical results and experience. These risks and uncertainties include, but are not limited to, the following: uncertainties relating to the timing of the consummation of the sale of the Voortman® brand to Second Nature Brands (the "Transaction"); the possibility that any or all of the conditions to the consummation of the Transaction may not be satisfied or waived, including the failure to receive required regulatory approvals; the effect of the announcement or pendency of the Transaction on the Company's ability to retain key personnel and to maintain relationships with customers, suppliers and other business partners; risks relating to potential diversion of management's attention from the Company's ongoing business operations; and those described under "Risk Factors" in reports and statements filed by the Company with the
About The J.M. Smucker Co.
At The J.M. Smucker Co., it is our privilege to make food people and pets love by offering a diverse family of brands available across
The J.M. Smucker Co. is the owner of all trademarks referenced herein, except for
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SOURCE The J.M. Smucker Co.
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