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ORRVILLE, Ohio -- J.M. Smucker Co. said on Friday that it has agreed to sell its U.S. foodservice and bakery products business and Canadian Gourmet Baker locations to Value Creation Partners, Inc. of Columbus, Ohio for $43 million.
The deal is subject to regulatory approval and is scheduled to close in mid-February. It is not expected to affect the company's remaining foodservice businesses in the United States and Canada, according to the company.
The businesses to be sold were part of the company's International Multifoods acquisition and include manufacturing and marketing operations for baking mixes and frozen baked goods for restaurants, bakeries, and other customers in the United States and Canada.
The foodservice and bakery products businesses reported net sales of $202.5 million for Multifoods' 2004 fiscal year ended Feb. 28, the company said. Smucker has reported the businesses as discontinued operations since June 18.
The company decided in July to divest the businesses because they weren't aligned with its foodservice strategy.