J.M. Smucker to divest Voortman cookies
October 24, 2024
By Food in Canada Staff
The J.M. Smucker Co. enters into a definitive agreement to sell its Voortman cookie brand to Second Nature Brands. The all-cash transaction is valued at approximately US$305 million.
The transaction includes all Voortman trademarks and the company’s leased manufacturing facility in Burlington, Ont. Approximately 300 employees will also transition with the business.
“This decision reflects our continued commitment to portfolio and resource optimization to focus on our largest growth opportunities as a company,” said Mark Smucker, board chair, president and CEO. “The divestiture of the Voortman brand is an important step in our integration plans that will enable the execution of our sweet baked snacks strategy through dedicated focus and ongoing investments in the Hostess brand, advancing our leadership in the sweet baked goods category. I want to recognize and thank the many talented teams who have supported this brand.”
The Voortman brand generated net sales of approximately US$65 million for the company’s fiscal year ended April 30, 2024. For fiscal 2025, the company anticipates full-year net sales from the Voortman brand to be approximately US$150 million.
The company plans to use net proceeds from the transaction to pay down debt. The transaction is anticipated to close in the third quarter of the company’s current fiscal year ending April 30, 2025.