Smucker to Sell Cloverhill and Big Texas Brands

The sale to JTM Foods is an all-cash transaction valued at approximately $40 million.

February 04, 2025

The J.M. Smucker Co. announced it has reached a “definitive agreement to divest its Cloverhill and Big Texas brands, as well as certain private label products, to JTM Foods, LLC (JTM),” according to a press release from Smucker

The company said the all-cash transaction is valued at approximately $40 million, subject to a working capital adjustment, and includes relevant trademarks, licenses and the Company's manufacturing facility in Chicago. Approximately 400 employees will also transition with the business. 

"This divestiture reflects our continued commitment to portfolio optimization to prioritize resources to support the execution of our Sweet Baked Snacks strategy, focused on growing the Hostess brand and advancing our leadership in the sweet baked goods category," said Dan O'Leary, senior vice president and general manager, sweet baked snacks and pet. "This decision continues the ongoing work to ensure our manufacturing network is optimized to mitigate costs and reduce complexity." 

According to the press release, divested value brands and private label products generated net sales of approximately $30 million for the company's fiscal year ended April 30, 2024, which represents a partial year of net sales reported in its Sweet Baked Snacks segment results following its acquisition on November 7, 2023. For fiscal year 2025, the company anticipates full-year net sales from the divested value brands and private label products to be approximately $60 million. 

The transaction is anticipated to close in the fourth quarter of the company's current fiscal year ending April 30, 2025.  

In other recent sales news, last month Flowers Foods Inc. entered into a definitive agreement to acquire Simple Mills for $795 million in cash. The addition of Simple Mills “expands Flowers' exposure to better-for-you and attractive snacking segments and enhances the company’s growth and margin prospects.” Simple Mills is a natural brand offering better-for-you crackers, cookies, snack bars and baking mixes.