The J.M. Smucker Co. has signed a definitive agreement to acquire the Wesson oil brand from Conagra Brands. The all-cash transaction, which the company will fund primarily with debt, is valued at approximately $285 million, prior to an expected tax benefit related to the acquisition with a current value of approximately $45 million.
Under the terms of the agreement, Conagra will continue to manufacture products sold under the Wesson brand and provide certain other transition services for up to one year following the close of the transaction. After the transition period, the J.M. Smucker expects to consolidate Wesson production into its existing oils manufacturing facility in Cincinnati, Ohio.
J.M. Smucker anticipates the acquisition to add annual net sales of approximately $230 million.
“The addition of Wesson creates a strong complement to our Crisco brand,” said CEO Mark Smucker. “By allowing us to more efficiently use existing supply chain and go-to-market resources, this acquisition will lead to significant cost savings that can further fuel growth and innovation opportunities across the company.”