Brynwood Partners of Greenwich has signed a definitive agreement to acquire a portfolio of brands from The J.M. Smucker Co. for $375 million. The portfolio includes the exclusive U.S. rights to the Pillsbury brand’s shelf-stable baking products along with the Hungry Jack, White Lily, Jim Dandy and Martha White brands.
The agreement marks the single largest acquisition in Brynwood Partners’ 34-year history, according to company chairman and CEO Henk Hartong III. The portfolio generated net sales for Smucker of approximately $370 million for the fiscal year ended April 30. The transaction does not include the company’s baking business in Canada.
The Pillsbury brand license agreement is a royalty-free, perpetual agreement with General Mills Inc. and encompasses all U.S. shelf-stable baking products, including flour, dry baking mixes and ready-to-spread frosting, in the retail channel.
The transaction also includes a 650,000-square-foot manufacturing facility in Toledo, Ohio, where many of the acquired products are manufactured; approximately 255 full-time employees work there.
To acquire the assets from Smucker, Brynwood created Hometown Food Co., which will be headquartered in Chicago and will operate the Toledo facility.
“The divestiture reflects our strategy to further focus our portfolio and develop a stronger presence in pet food, coffee and snacking ”” all large, growing categories with sustainable growth projections,” said Mark Smucker, president and CEO of The J.M. Smucker Co. “Pillsbury, Martha White and Hungry Jack remain iconic brands, and although they no longer align with our strategic priorities, we are confident they will be nurtured at Brynwood.”
The deal is expected to close in the third quarter of this year, subject to customary U.S. regulatory review.
