J.M. Smucker Bids Farewell To Sahale Snacks: A $34M Deal To Usher In New Growth

J.M. Smucker Company SJM penned a deal to sell its Sahale Snacks brand to Second Nature Brands in an all-cash transaction for around $34 million. 

The transaction includes all trademarks and its leased manufacturing facility in Seattle, Washington and about 100 employees.

The company expects the impact of the divestiture to be immaterial on its adjusted EPS on a full-year basis.

SJM will provide additional information about the transaction's impact on its FY24 outlook in the next quarterly earnings call. 

The transaction is expected to close in Q3, subject to customary closing conditions.

"This divestiture reflects our continued commitment to portfolio and resource optimization to sharpen our focus and support continued growth. The divestiture of the Sahale Snacks® brand will support continued growth in our Consumer Foods business with enhanced investment in our Smucker's® Uncrustables® brand and building on our leadership in spreads. As always, any decision that impacts our employees is only made after careful consideration and I want to thank all who have supported this brand, which has played an important role in our consumer foods portfolio." said Mark Smucker, Chair of the Board, President and CEO. 

As of July 31, 2023, SJM's cash and equivalents stood at $241.1 million.

Also Read: Consumer Staples Company JM Smucker Announces Acquisition of Hostess Brands

Price Action: SJM shares closed lower by 2.31% at $125.44 on Wednesday.