The J.M. Smucker Co. is selling its fermented food condiment brands in Canada to private label food and beverage manufacturer TreeHouse Foods, Inc. for around US$20 million.
Brands included in the deal are Bick’s pickles, Habitant pickled beets, Woodman’s horseradish and McLarens pickled onions.
The brands collectively generated net sales of around $60 million in the company’s fiscal year ended April 30, 2023.
Headquartered in Illinois, TreeHouse Foods operates a network of approximately 26 production facilities across the United States and Canada.
"This decision will allow us to enhance focus on growing our position in the coffee, spreads, frozen handheld and pet categories in Canada with leading and emerging brands such as Folgers, Smucker's, Jif, Smucker's Uncrustables, Meow Mix and Milk-Bone, and supporting continued leadership in the baking category with our Robin Hood, Five Roses, Carnation and Eagle Brand brands," said Tim Wayne, senior vice president and general manager, Away From Home, Canada and International, in a statement. "On behalf of the organization, I would like to extend our appreciation to the employees who have worked diligently to support these brands, which have played an important role in our Canadian portfolio."
The transaction is expected to close in the third quarter of fiscal 2024.
"This acquisition of assets is consistent with our strategy and enhances TreeHouse Foods' depth in our growing pickles category, allowing us to expand into Canada and thus positioning TreeHouse for continued success," stated Steve Oakland, chairman, CEO and president of TreeHouse Foods. "We have had a co-packing arrangement with Bick's pickles for many years and we are pleased to integrate this business with our manufacturing network."