Last updated on July 11th, 2018 at 09:21 am
The J.M. Smucker Co. is selling its shelf-stable baking business, including the exclusive U.S. rights to the Pillsbury brand, along with the Hungry Jack, White Lily, Jim Dandy, Martha White and Funfetti brands, to equity firm Brynwood Partners VII LP and Brynwood Partners VIII LP for $375 million.
The Pillsbury brand license agreement is a royalty-free, perpetual agreement with General Mills Inc. and encompasses all U.S. shelf-stable baking products, including flour, dry baking mixes and ready-to-spread frosting, in the retail channel. The transaction includes the 650,000-s.f. manufacturing facility in Toledo, Ohio, and is expected to close in the third quarter of 2018, subject to customary U.S. regulatory review.
Brynwood created Hometown Food Co. to acquire the assets from Smucker. Hometown Food will be headquartered in Chicago and will operate the Toledo facility. Many of the acquired products are manufactured at the facility, which employs approximately 255 people full-time.
“We are extremely pleased to announce the formation of the Hometown Food Company, which marks the single largest acquisition in Brynwood Partners’ 34-year history,” said Henk Hartong III, chairman and CEO of Brynwood. “We are excited to add the famous Pillsbury and Hungry Jack brands along with the White Lily, Jim Dandy and Martha White brands and their great-tasting products to our investment portfolio. The iconic portfolio of brands and the company’s strong Midwestern manufacturing footprint will provide us with a solid platform to invest in and to grow.
“Brynwood has established itself as the leading private equity sponsor in the corporate carve out investment space,” Hartong continued. “We are excited to bring focus and energy to this great business and to build these brands that generations of families have loved through the years.”
“On behalf of Brynwood Partners, I would like to express my sincere gratitude to the Smucker team for working with us on this complex corporate carve-out,” said Ian MacTaggart, president and COO of Brynwood. “We look forward to working closely with Smucker and the company’s loyal employees to transition the business to our new platform.”
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