Smuckers is well-known for its jelly, Jif peanut butter and the celebrated coffee, Folgers. It has announced that Brynwood Partners, a private equity company, will be acquiring parts of the company that includes Pillsbury, Martha White, Hungry Jack, White Lily and Jim Dandy brands, as well as the namesake Smucker.
This comes as the company facing challenges trying to please customers’ changing tastes. Mark Smucker, the CEO at Smucker, explained that by doing this, the company will boost other segments such as snack offerings, coffee, and pet food. It will help to distribute resources in areas that are needed in help the business grow.
The well-known Pillsbury Doughboy was first seen on TV more than half a century ago. Pillsbury today focuses on flour, ready-to-spread frosting, and dry baking mixes. In contrast, other companies such as Brynwood are purchasing Smucker because of the well known products they can receive a boost from new marketing ideas. Brynwood stated that the transaction includes a 650,000 square-foot manufacturing plant in Ohio.
Brynwood also indicated that the exemplary selection of brands, along with the company’s strong manufacturing footprint, will definitely deliver a solid foundation for financial growth. The company also owns SunnyD and Juicy Juice, which are well-known brands found throughout grocery stores and supermarkets.
There have been several transactions of this type in the industry. Nestle, owner of many US candy brands such as BabyRuth, Butterfinger, and Nerds, sold candy brads worth as much as $3 billion to Ferrero, the maker of Nutella.
In addition, another transaction took place last month when the maker of Chef Boyardee and Orville Redenbacher’s, ConAgra Brands bought Pinnacle Foods, in a deal worth almost $11 billion.
These types of deals will strengthen the companies’ growth and expand their businesses in an attempt to please more customers.