J.M. Smucker to divest Voortman cookie brand for $305M

J.M. Smucker (SJM) has entered into a definitive agreement to sell its Voortman cookie brand to Second Nature Brands, a U.S.-based creator of premium snacks and treats controlled by CapVest Partners LLP. The all-cash transaction is valued at approximately $305M, subject to a working capital adjustment. The transaction includes all Voortman trademarks and the company’s leased manufacturing facility in Burlington, Ontario, Canada. In addition, approximately 300 employees will transition with the business. The company also confirmed continued progress on the integration of Hostess Brands, and that it remains on track to achieve expected synergies of $100M from the acquisition by the end of FY26. The Voortman brand generated net sales of approximately $65M for the company’s FY24, which represents a partial year of net sales reported in its Sweet Baked Snacks segment results following its acquisition on November 7, 2023. For FY25, the company anticipates full-year net sales from the Voortman brand to be approximately $150M. The company expects the divestiture to be dilutive to its adjusted EPS by approximately 25c on a full-year basis. The company anticipates using the net proceeds from the transaction to pay down debt, which will contribute an EPS benefit of approximately 10c on a full-year basis. The transaction is anticipated to close in Q3 of the company’s current FY25.