Last updated on October 25th, 2024
The J.M. Smucker Co. 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.
The all-cash transaction is valued at about $305 million, subject to a working capital adjustment.
It includes all Voortman trademarks and the J.M. Smucker Co.’s leased manufacturing facility in Burlington, Ontario, Canada. In addition, about 300 employees will transition with the business.
“This decision reflects our continued commitment to portfolio and resource optimization to focus on our largest growth opportunities as a company,” said Mark Smucker, chair of the board, president and CEO of The J.M. Smucker Co.
“The divestiture of the Voortman brand is an important step in our integration plans that will enable the execution of our Sweet Baked Snacks strategy through dedicated focus and ongoing investments in the Hostess brand, advancing our leadership in the sweet baked goods category. I want to recognize and thank the many talented teams who have supported this brand.”
The company also confirmed continued progress on the integration of Hostess Brands, including the completion of systems integration earlier this month, and that it remains on track to achieve expected synergies of $100 million from the acquisition by the end of fiscal year 2026.
The Voortman brand generated net sales of about $65 million for the J.M. Smucker Co.’s fiscal year, which ended April 30, which represents a partial year of net sales reported in its Sweet Baked Snacks segment results, following its acquisition on Nov. 7, 2023. For fiscal year 2025, the company anticipates full-year net sales from the Voortman brand to be about $150 million.
“We are excited to welcome the Voortman brand and team to the Second Nature Brands family,” said Victor Mehren, CEO of Second Nature Brands. “This strategic and transformative acquisition fits perfectly into our better snacking and treating portfolio of brands. The acquisition of Voortman broadens our scale within the cookie category and unlocks new opportunities and capabilities for future growth in the U.S. and Canada.”
The company anticipates using the net proceeds from the transaction to pay down debt, which will contribute an earnings per share benefit of about $0.10 on a full-year basis. It will further discuss the transaction’s impact on its fiscal year 2025 outlook when it releases its second quarter results.
The transaction is anticipated to close in the third quarter of the company’s current fiscal year ending April 30, subject to customary closing conditions including the receipt of required regulatory approvals.
