The J.M. Smucker Co has announced the completion of its divestment of the Voortman business to Second Nature Brands.
J.M. Smucker previously announced the signing of a definitive agreement for the transaction in October, with the deal valued at around $305 million (€289.8 million), subject to a working capital adjustment.
Optimised Portfolio
In a statement, J.M. Smucker said that the deal 'reflects the company's continued commitment to optimising its portfolio and reallocating resources to its core growth brands'.
The transaction includes all trademarks associated with the Voortman brand – a manufacturer of cookies based in Burlington, Ontario, Canada – as well as its leased manufacturing facility. As part of the transaction, some 300 employees will transition to Second Nature Brands.
Updated Guidance
Following the completion of the transaction, J.M. Smucker has updated its full-year fiscal 2025 net sales guidance, noting that it expects net sales to increase between 7.5% and 8.5% compared to the previous year.
This includes the removal of approximately $65 million in net sales from the Voortman business for fiscal 2025. Excluding non-comparable sales, net sales are projected to rise between 1.0% and 2.0%, accounting for the impact of other recent acquisitions (including Hostess Brands) and divestitures, such as the the Voortman, Canada condiment, and Sahale Snacks businesses.
Despite the adjustment in sales guidance, the company has reaffirmed its previously communicated outlook for fiscal 2025 adjusted earnings per share, free cash flow, capital expenditures, and adjusted effective income tax rate.
The J.M. Smucker Co is present in categories such as coffee, peanut butter, fruit spreads, frozen handhelds, sweet baked goods, dog snacks, and cat food, with brands including Folgers, Dunkin', Café Bustelo, Jif, Uncrustables, Smucker's, Hostess, Milk-Bone, and Meow Mix.
