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US food and beverages manufacturer JM Smucker has announced that it has entered into an agreement to sell its Cloverhill and Big Texas bakery brands, as well as certain private-label products, to ready meals firm JTM Foods for $40 million.
As part of the deal, relevant trademarks and licences, the company’s manufacturing facility in Chicago (IL), and approximately 400 employees will transfer with the business.
Commenting on the move, Sweet Baked Snacks and Pet senior vice president and general manager Dan O’Leary said: “This divestiture reflects our continued commitment to portfolio optimization to prioritize resources to support the execution of our Sweet Baked Snacks strategy, focused on growing the Hostess® brand, and advancing our leadership in the sweet baked goods category. This decision continues the ongoing work to ensure our manufacturing network is optimized to mitigate costs and reduce complexity”.
The transaction is expected to close in the fourth quarter of the company’s current financial year ending 30th April, subject to a working capital adjustment.
Source: JM Smucker
