“This divestiture reflects our continued commitment to portfolio optimization to prioritize resources to support the execution of our Sweet Baked Snacks strategy, focused on growing the Hostess brand, and advancing our leadership in the sweet baked goods category,” says Dan O’Leary, Sweet Baked Snacks and Pet senior vice president and general manager at The J.M. Smucker Company. “This decision continues the ongoing work to ensure (that) our manufacturing network is optimized to mitigate costs and reduce complexity.”

The divested brands and private-label products generated net sales of approximately $30 million for the company’s fiscal year that ended April 30, 2024, which represents a partial year of net sales reported in its Sweet Baked Snacks segment results following its acquisition on Nov. 7, 2023. For the 2025 fiscal year, the company anticipates full-year net sales from the divested brands and private-label products to reach approximately $60 million.

The company expects the divestiture to be immaterial to its adjusted earnings per share on a full-year basis. It anticipates using the net proceeds from the transaction to pay down debt. The company will provide additional information about the transaction’s impact, which is expected to be immaterial to its 2025 fiscal year outlook, when it releases its third quarter results.

The transaction is anticipated to close in the fourth quarter of the company’s current fiscal year, which ends April 30, 2025.