The J. M. Smucker Company is selling its US baking business, which includes the Pillsbury, Hungry Jack and Jim Bandy brands, to private investors for $375 million.
For the year ended April 30, 2018, the baking business generated nets sales of approximately $370 million.
The transaction, which does not include the company’s baking business in Canada, is part of its strategy to “focus its portfolio and develop a stronger presence in pet food, coffee and snacking”.
According to President and CEO Mark Smucker, all the aforementioned are “large, growing categories with sustainable growth projections”.
“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,” he said.
“While the decision to divest these brands was difficult, it underscores our commitment to allocating resources toward those areas of the business critical to our growth.”
The transaction is expected to close in the second quarter of the Company’s 2019 fiscal year.