US food firm JM Smucker has announced that it has reached an agreement to sell the Crisco oils and shortening business to B&G Foods.
According to a company press release, the move is part of JM Smucker’s intent to exit the US baking category to focus on pet food, coffee, and snacking products.
The sale includes Crisco’s oils and shortening products, the brand, certain trademarks, and licensing agreements, manufacturing and warehouse facilities in Ohio, and the oils and shortening business outside the US, mainly in Canada.
Mark Smucker, president and chief executive officer of JM Smucker, said: “Crisco is an iconic brand that is beloved by consumers, and the business has been a solid contributor to our financial performance. 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”.
The cash transaction is valued at approximately $550 million.
Source: JM Smucker