JM Smucker sells Pickle brands to TreeHouse Foods
USA – JM Smucker, an American food and beverage manufacturer, has reached a definitive agreement to sell its Canada-based pickle brands to US peer TreeHouse Foods.
The brands included in this transaction consist of Bick’s pickles, Habitant pickled beets, Woodman’s horseradish, and McLarens pickled onions.
The all-cash transaction is valued at approximately US$20 million, subject to a working capital adjustment.
In the fiscal year ending April 30, 2023, the brands generated net sales of approximately US $60 million for JM Smucker.
“This acquisition of assets is consistent with our strategy and enhances TreeHouse Foods’ depth in our growing pickles category, allowing us to expand into Canada and thus positioning TreeHouse for continued success,” TreeHouse CEO Steve Oakland said.
“We have had a co-packing arrangement with Bick’s Pickles for many years and we are pleased to integrate this business with our manufacturing network.”
TreeHouse Foods, known as the largest private-label manufacturer in the US, plans to integrate these pickle brands into its growing pickles category.
The acquisition will also allow TreeHouse to expand its presence in Canada. The company already has a co-packing arrangement with Bick’s Pickles, making this integration a strategic move for expanding its manufacturing network.
“This decision will allow us to enhance focus on growing our position in the coffee, spreads, frozen handheld and pet categories in Canada with leading and emerging brands such as Folgers, Smucker’s, Jif, Smucker’s Uncrustables, Meow Mix and Milk-Bone, and support baking category with our Robin Hood, Five Roses, Carnation and Eagle Brand brands,” Tim Wayne, senior vice president and general manager, Away From Home, Canada and International said.
“On behalf of the organization, I would like to extend our appreciation to the employees who have worked diligently to support these brands, which have played an important role in our Canadian portfolio.”
The transaction is expected to close in the fourth quarter of JM Smucker’s current fiscal year, which ends in April 2024, subject to customary closing conditions.
In recent times, both JM Smucker and TreeHouse Foods have been reshaping their portfolios. JM Smucker recently sold its Sahale Snacks business and made an acquisition deal to purchase Hostess Brands, a US sweet-snacks business.
Meanwhile, TreeHouse Foods has been repositioning its business to focus on more profitable product categories.
The company sold private-label snack-bar assets to John B. Sanfilippo & Son and is actively looking to add capacity through potential acquisitions.
JM Smucker’s move to divest these pickle brands aligns with its portfolio and resource optimization strategy, allowing the company to focus on other product categories and emerging brands while reinforcing its leadership position in various segments.
