The J.M. Smucker Co. (SJM) has officially agreed to sell its Voortman cookie brand to Second Nature Brands, which is under the control of CapVest Partners LLP, for a total cash consideration of around $305 million. This transaction encompasses all Voortman trademarks and includes the company's leased manufacturing facility located in Burlington, Ontario, Canada. Approximately 300 employees will also join the business as part of this deal. This strategic decision aligns with the company's ongoing efforts to optimize its portfolio and strategically redirect resources towards its primary growth brands.
It is expected that this divestiture will result in a roughly $0.25 reduction in adjusted earnings per share over a full year. However, J.M. Smucker Co. plans to use the proceeds from the sale to reduce debt, which is projected to provide an earnings per share benefit of approximately $0.10 annually.
