ORRVILLE, Ohio, Dec. 2, 2024
/PRNewswire/ -- The J.M. Smucker Co.
(NYSE: SJM) ("Company") announced today the closing of the
transaction to divest the Voortman®
business to Second Nature Brands. The Company previously
announced the signing of a definitive agreement for the transaction
on October 22, 2024. The all-cash
transaction is valued at approximately $305
million, subject to a working capital adjustment, and
reflects the Company's continued commitment to optimizing its
portfolio and reallocating resources to its core growth brands.
The transaction includes all Voortman®
trademarks and the Company's leased manufacturing facility in
Burlington, Ontario, Canada. In
addition, approximately 300 employees will transition with the
business.
The Company updated its full-year fiscal 2025 net sales
guidance to reflect the impact of the divested business. Net sales
is anticipated to increase 7.5 to 8.5 percent compared to the prior
year. The updated net sales guidance reflects the removal of
approximately $65 million of divested
net sales in fiscal 2025, with the estimated net sales impact
evenly distributed throughout the remainder of the fiscal year. On
a comparable basis, net sales is expected to increase 1.0 to 2.0
percent, which excludes noncomparable sales in the current year
from the acquisition of Hostess Brands and noncomparable sales
in the prior year related to the divestitures of the
Voortman®, Canada condiment, and Sahale
Snacks® businesses. The Company maintains its fiscal
2025 adjusted earnings per share, free cash flow, capital
expenditures, and adjusted effective income tax rate outlook as
communicated in its most recent quarterly earnings announcement on
November 26, 2024.
The J.M. Smucker Co. Forward Looking Statements
This press release ("Release") includes certain forward-looking
statements within the meaning of federal securities laws. The
forward-looking statements may include statements concerning our
current expectations, estimates, assumptions and beliefs concerning
future events, conditions, plans and strategies that are not
historical fact. Any statement that is not historical in nature is
a forward-looking statement and may be identified by the use of
words and phrases such as "expect," "anticipate," "believe,"
"intend," "will," "plan," "strive" and similar phrases. Federal
securities laws provide a safe harbor for forward-looking
statements to encourage companies to provide prospective
information. We are providing this cautionary statement in
connection with the safe harbor provisions. Readers are cautioned
not to place undue reliance on any forward-looking statements,
which speak only as of the date made, when evaluating the
information presented in this Release, as such statements are by
nature subject to risks, uncertainties and other factors, many of
which are outside of our control and could cause actual results to
differ materially from such statements and from our historical
results and experience. We do not undertake any obligation to
update or revise these forward-looking statements to reflect new
events or circumstances. The risks, uncertainties, important
factors, and assumptions listed and discussed in this press
release, which could cause actual results to differ materially from
those expressed, include: the Company's ability to successfully
integrate Hostess Brands' operations and employees and to implement
plans and achieve financial forecasts with respect to the Hostess
Brands' business; disruptions or inefficiencies in the Company's
operations or supply chain, including any impact caused by product
recalls, political instability, terrorism, geopolitical conflicts
(including the ongoing conflicts between Russia and Ukraine and Israel and Hamas), extreme weather conditions,
natural disasters, pandemics, work stoppages or labor shortages
(including potential strikes along the U.S. East and Gulf coast
ports and potential impacts related to the duration of a recent
strike at the Company's Buffalo, New
York manufacturing facility), or other calamities; risks
related to the availability of, and cost inflation in, supply chain
inputs, including labor, raw materials, commodities, packaging, and
transportation; the impact of food security concerns involving
either the Company's products or its competitors' products,
including changes in consumer preference, consumer litigation,
actions by the U.S. Food and Drug Administration or other agencies,
and product recalls; a disruption, failure, or security breach of
the Company or its suppliers' information technology systems,
including, but not limited to, ransomware attacks; and risks
related to other factors described under "Risk Factors" in other
reports and statements filed with the Securities and Exchange
Commission, including the Company's most recent Annual Report on
Form 10-K.
About The J.M. Smucker Co.
At The J.M. Smucker Co., it is our privilege to make food
people and pets love by offering a diverse family of brands
available across North America. We
are proud to lead in the coffee, peanut butter, fruit spreads,
frozen handheld, sweet baked goods, dog snacks, and cat food
categories by offering brands consumers trust for themselves and
their families each day, including Folgers®,
Dunkin'®, Café
Bustelo®, Jif®, Uncrustables®,
Smucker's®, Hostess®,
Milk-Bone®, and Meow
Mix®. Through our unwavering commitment to producing
quality products, operating responsibly and ethically, and
delivering on our Purpose, we will continue to grow our business
while making a positive impact on society. For more information,
please visit jmsmucker.com.
The J.M. Smucker Co. is the owner of all trademarks referenced
herein, except for Dunkin'®, which is a trademark
of DD IP Holder LLC. The Dunkin'® brand is licensed to
The J.M. Smucker Co. for packaged coffee products sold in retail
channels such as grocery stores, mass merchandisers, club stores,
e-commerce and drug stores, and in certain away from home channels.
This information does not pertain to products for sale
in Dunkin'® restaurants.
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SOURCE The J.M. Smucker Co.
