The J. M. Smucker Co. has closed the sale of its U.S. baking business to Brynwood Partners VII LP and Brynwood Partners VIII LP for $375 million. After signing a definitive agreement to divest its U.S. baking business on July 9, Smucker has divested itself of its Pillsbury, Martha White, Hungry Jack, White Lily, and Jim Dandy brands, along with all relevant trademarks and licensing agreements, and a manufacturing facility in Toledo, Ohio. The transaction does not include the company's baking business in Canada. The recipient is the newly formed Hometown Food Co., a wholly owned portfolio company of Brynwood Partners VII LP and Brynwood Partners VIII LP. Hometown Foods will be headquartered in Chicago and will operate its newly acquired 650,000-square-foot Toledo manufacturing facility. It is expected to employ some 50 people and has drawn in executive talent from existing food companies, though not from Smucker. Smucker has been working to reshape its food division. In March, the company dropped its pursuit of Conagra’s Wesson oil brand after the FTC challenged the deal. It was rumored then that the Orville-based company could be looking to unload its baking business, which in July it ultimately announced it would.
