J.M. Smuckers to Divest its Crisco Business to B&G Foods

J.M. Smucker Co. announced on October 26 it has entered into a definitive agreement to sell its Crisco oils and shortening business to B&G Foods, Inc. for approximately $550 million.  The divestiture of the Crisco business aligns with the Company’s previously stated intent to exit the U.S. baking category and focus more of its resources on its core growth platforms of pet food, coffee, and snacking.

The transaction encompasses oils and shortening products sold under the Crisco brand, certain trademarks and licensing agreements, dedicated manufacturing and warehouse facilities located in Cincinnati, Ohio, and the Company’s oils and shortening business outside the U.S., which is primarily in Canada.  The transaction is expected to close in the third quarter of the Company’s 2021 fiscal year, subject to customary closing conditions, including receipt of required regulatory approvals.

Given Crisco’s strong track record, B&G Foods’ acquisition of the brand is in keeping with its “longstanding acquisition strategy of targeting well-established brands with defensible market positions and strong cash flow at reasonable purchase price multiples.”  The addition of Crisco also reinforces B&G’s commitment to strengthen its baking business which includes such brands as Baker’s Joy, Brer Rabbit molasses, Grandma’s Molasses, Dec-A-Cake and others.