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The J.M. Smucker Co. Completes the Divestiture of Voortman® Brand to Second Nature Brands and Updates Fiscal Year 2025 Net Sales Outlook

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The J.M. Smucker Co. (NYSE: SJM) has completed the divestiture of its Voortman® business to Second Nature Brands for approximately $305 million in cash. The transaction includes all Voortman® trademarks, a leased manufacturing facility in Burlington, Ontario, and the transition of about 300 employees. Following this, SJM updated its fiscal 2025 net sales guidance, projecting a 7.5 to 8.5 percent increase compared to the prior year, accounting for the removal of approximately $65 million in divested net sales. On a comparable basis, excluding acquisitions and divestitures, net sales are expected to increase 1.0 to 2.0 percent.

The J.M. Smucker Co. (NYSE: SJM) ha completato la cessione della sua attività Voortman® a Second Nature Brands per circa 305 milioni di dollari in contante. La transazione include tutti i marchi Voortman®, un impianto di produzione in affitto a Burlington, Ontario, e il passaggio di circa 300 dipendenti. A seguito di ciò, SJM ha aggiornato la sua previsione di fatturato netto per il 2025, prospettando un aumento del 7,5 all'8,5 percento rispetto all'anno precedente, tenendo conto della rimozione di circa 65 milioni di dollari in fatturato netto ceduto. Su base comparabile, escludendo acquisizioni e cessioni, si prevede un aumento del fatturato netto del 1,0 al 2,0 percento.

The J.M. Smucker Co. (NYSE: SJM) ha completado la cesión de su negocio Voortman® a Second Nature Brands por aproximadamente 305 millones de dólares en efectivo. La transacción incluye todas las marcas registradas de Voortman®, una instalación de fabricación arrendada en Burlington, Ontario, y la transición de aproximadamente 300 empleados. Tras esto, SJM actualizó su guía de ventas netas para el año fiscal 2025, proyectando un aumento del 7,5 al 8,5 por ciento en comparación con el año anterior, teniendo en cuenta la eliminación de aproximadamente 65 millones de dólares en ventas netas desinvertidas. En una base comparable, excluyendo adquisiciones y desinversiones, se espera que las ventas netas aumenten del 1,0 al 2,0 por ciento.

The J.M. Smucker Co. (NYSE: SJM)가 Second Nature Brands에 약 3억 5천만 달러Voortman® 사업을 매각했습니다. 이 거래는 Voortman® 상표, 온타리오주 벌링턴의 임대 생산 시설 및 약 300명의 직원 전환을 포함합니다. 이후 SJM은 2025 회계연도 순 매출 가이드를 업데이트하여, 이전 연도 대비 7.5~8.5% 증가할 것으로 예상하며, 약 6500만 달러의 매각된 순 매출을 제외합니다. 비교 가능한 기준으로, 인수 및 매각을 제외하면 순 매출은 1.0~2.0% 증가할 것으로 예상됩니다.

The J.M. Smucker Co. (NYSE: SJM) a finalisé la cession de son activité Voortman® à Second Nature Brands pour environ 305 millions de dollars en espèces. La transaction comprend toutes les marques Voortman®, une usine de fabrication louée à Burlington, Ontario, et le transfert d'environ 300 employés. Suite à cela, SJM a mis à jour ses prévisions de ventes nettes pour l'exercice 2025, projetant une augmentation de 7,5 à 8,5 pour cent par rapport à l'année précédente, en tenant compte de la suppression d'environ 65 millions de dollars de ventes nettes cédées. Sur une base comparable, en excluant les acquisitions et les cessions, les ventes nettes devraient augmenter de 1,0 à 2,0 pour cent.

Die J.M. Smucker Co. (NYSE: SJM) hat die Veräußerung ihres Voortman®-Geschäfts an Second Nature Brands für etwa 305 Millionen Dollar in bar abgeschlossen. Die Transaktion umfasst alle Voortman®-Marken, eine angemietete Produktionsstätte in Burlington, Ontario, und den Übergang von etwa 300 Mitarbeitern. In der Folge aktualisierte SJM seine Umsatzprognose für das Geschäftsjahr 2025 und rechnet mit einem Umsatzanstieg von 7,5 bis 8,5 Prozent im Vergleich zum Vorjahr, wobei etwa 65 Millionen Dollar der veräußerten Netto-Umsätze berücksichtigt werden. Mit vergleichbaren Werten, ohne Berücksichtigung von Übernahmen und Veräußerungen, wird ein Anstieg des Netto-Umsatzes von 1,0 bis 2,0 Prozent erwartet.

Positive
  • Sale of Voortman® business for $305 million in cash strengthens balance sheet
  • Maintained fiscal 2025 adjusted earnings per share and free cash flow guidance despite divestiture
  • Projected comparable net sales growth of 1.0-2.0% for fiscal 2025
Negative
  • Loss of $65 million in annual revenue from Voortman® business divestiture

Insights

The $305 million divestiture of Voortman® to Second Nature Brands represents a strategic move to streamline SJM's portfolio. The transaction's impact appears neutral to positive, as the company maintains its fiscal 2025 adjusted EPS and free cash flow guidance despite removing $65 million in projected sales.

The updated net sales guidance showing 7.5-8.5% growth (or 1-2% on a comparable basis) demonstrates the company's ability to grow even after removing non-core assets. This divestiture aligns with SJM's broader strategy following the recent $5.6 billion Hostess Brands acquisition, indicating a deliberate portfolio reshaping toward higher-growth segments.

The transaction's valuation implies a revenue multiple of approximately 4.7x based on the $65 million annual sales, which is reasonable for a mature cookies business. The retention of earnings guidance suggests effective cost management and potential operational synergies from the portfolio optimization.

This divestiture strengthens SJM's strategic positioning in the snack and consumer packaged goods sector. The decision to sell Voortman® while retaining core brands and the recent Hostess acquisition indicates a clear focus on premium, high-growth segments of the snack market.

The transition of 300 employees and the Burlington facility to Second Nature Brands ensures operational continuity while allowing SJM to concentrate resources on integrating Hostess Brands. The maintenance of earnings guidance despite the revenue adjustment suggests minimal disruption to overall business operations and potentially improved operational efficiency.

The timing of this divestiture, following closely after the Hostess acquisition, demonstrates management's commitment to portfolio optimization and strategic focus on core growth opportunities.

ORRVILLE, Ohio, Dec. 2, 2024 /PRNewswire/ -- The J.M. Smucker Co. (NYSE: SJM) ("Company") announced today the closing of the transaction to divest the Voortman® business to Second Nature Brands. The Company previously announced the signing of a definitive agreement for the transaction on October 22, 2024. The all-cash transaction is valued at approximately $305 million, subject to a working capital adjustment, and reflects the Company's continued commitment to optimizing its portfolio and reallocating resources to its core growth brands.

The transaction includes all Voortman® trademarks and the Company's leased manufacturing facility in Burlington, Ontario, Canada. In addition, approximately 300 employees will transition with the business. 

The Company updated its full-year fiscal 2025 net sales guidance to reflect the impact of the divested business. Net sales is anticipated to increase 7.5 to 8.5 percent compared to the prior year. The updated net sales guidance reflects the removal of approximately $65 million of divested net sales in fiscal 2025, with the estimated net sales impact evenly distributed throughout the remainder of the fiscal year. On a comparable basis, net sales is expected to increase 1.0 to 2.0 percent, which excludes noncomparable sales in the current year from the acquisition of Hostess Brands and noncomparable sales in the prior year related to the divestitures of the Voortman®, Canada condiment, and Sahale Snacks® businesses. The Company maintains its fiscal 2025 adjusted earnings per share, free cash flow, capital expenditures, and adjusted effective income tax rate outlook as communicated in its most recent quarterly earnings announcement on November 26, 2024.

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. We do not undertake any obligation to update or revise these forward-looking statements to reflect new events or circumstances. The risks, uncertainties, important factors, and assumptions listed and discussed in this press release, which could cause actual results to differ materially from those expressed, include: the Company's ability to successfully integrate Hostess Brands' operations and employees and to implement plans and achieve financial forecasts with respect to the Hostess Brands' business; disruptions or inefficiencies in the Company's operations or supply chain, including any impact caused by product recalls, political instability, terrorism, geopolitical conflicts (including the ongoing conflicts between Russia and Ukraine and Israel and Hamas), extreme weather conditions, natural disasters, pandemics, work stoppages or labor shortages (including potential strikes along the U.S. East and Gulf coast ports and potential impacts related to the duration of a recent strike at the Company's Buffalo, New York manufacturing facility), or other calamities; risks related to the availability of, and cost inflation in, supply chain inputs, including labor, raw materials, commodities, packaging, and transportation; the impact of food security concerns involving either the Company's products or its competitors' products, including changes in consumer preference, consumer litigation, actions by the U.S. Food and Drug Administration or other agencies, and product recalls; a disruption, failure, or security breach of the Company or its suppliers' information technology systems, including, but not limited to, ransomware attacks; and risks related to other factors described under "Risk Factors" in other reports and statements filed with the Securities and Exchange Commission, including the Company's most recent Annual Report on Form 10-K.

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 North America. We are proud to lead in the coffee, peanut butter, fruit spreads, frozen handheld, sweet baked goods, dog snacks, and cat food categories by offering brands consumers trust for themselves and their families each day, including Folgers®, Dunkin'®, Café Bustelo®, Jif®, Uncrustables®, Smucker's®, Hostess®, Milk-Bone®, and Meow Mix®. Through our unwavering commitment to producing quality products, operating responsibly and ethically, and delivering on our Purpose, we will continue to grow our business while making a positive impact on society. For more information, please visit jmsmucker.com

The J.M. Smucker Co. is the owner of all trademarks referenced herein, except for Dunkin'®, which is a trademark of DD IP Holder LLC. The Dunkin'® brand is licensed to The J.M. Smucker Co. for packaged coffee products sold in retail channels such as grocery stores, mass merchandisers, club stores, e-commerce and drug stores, and in certain away from home channels. This information does not pertain to products for sale in Dunkin'® restaurants.

The J.M. Smucker Co. logo (PRNewsfoto/The J.M. Smucker Co.)

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SOURCE The J.M. Smucker Co.

FAQ

How much did SJM sell the Voortman® business for?

The J.M. Smucker Co. sold the Voortman® business to Second Nature Brands for approximately $305 million in an all-cash transaction, subject to working capital adjustment.

What is SJM's updated net sales guidance for fiscal 2025?

SJM projects net sales to increase 7.5 to 8.5 percent compared to the prior year, with comparable net sales growth of 1.0 to 2.0 percent excluding acquisitions and divestitures.

How many employees will transition with the Voortman® business sale?

Approximately 300 employees will transition with the Voortman® business to Second Nature Brands.

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