The J.M. Smucker Co. has inked an agreement to sell its Cloverhill and Big Texas brands, as well as certain private-label products, to JTM Foods LLC in Erie, Pa. Cloverhill and Big Texas brand baked goods are sold through the vending channel as well as C-store and retail outlets. JTM produces JJ’s Bakery-branded, co-manufactured and private-label sweet baked goods.
The all-cash transaction is valued at approximately $40 million, subject to a working capital adjustment. The deal includes relevant trademarks and licenses and the Cloverhill manufacturing facility in Chicago. Approximately 400 Cloverhill and Big Texas brand-related Smucker's employees join JTM Foods as a part of the transaction.
For the fiscal year 2025, J.M. Smucker Co. anticipates full-year net sales to be approximately $60 million from the product lines being sold. The transaction is expected to close in the fourth quarter of The J.M. Smucker Co.’s current fiscal year, which ends April 30, 2025.
What they are saying
"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," said Dan O'Leary, senior vice president and general manager, sweet baked snacks and pet, in a company statement. "This decision continues the ongoing work to ensure our manufacturing network is optimized to mitigate costs and reduce complexity."
Keep reading about The J.M. Smucker Co. and Hostess Brands
- The J.M. Smucker Co. to acquire Hostess Brands for approximately $5.6 billion
- The J.M. Smucker Co. will sell Voortman as a part of its shift to sweet baked snacks strategy
- The J.M. Smucker Co. announces new business structure and leadership changes
Keep reading about bakery and pastry company business moves
Linda Becker | Editor-in-Chief
Linda Becker is editor-in-chief of Automatic Merchandiser and VendingMarketWatch.com. She has more than 20 years of experience in B2B publishing, writing, editing and producing content for magazines, websites, webinars, podcasts, newsletters and eBooks, primarily for manufacturing and process engineering audiences. Since joining Automatic Merchandiser and VendingMarketWatch.com, Linda has developed a new appreciation for the convenience services industry and the essential role it plays. She is dedicated to serving readers by covering the latest news in the vending, office coffee service and micro market industry. She can be reached at 262-203-9924 or [email protected].
