WASHINGTON (dpa-AFX) - The J.M. Smucker Co. (SJM) has entered into a definitive agreement to sell its Voortman cookie brand to Second Nature Brands, controlled by CapVest Partners LLP. The all-cash deal is valued at approximately $305 million. The transaction includes all Voortman trademarks and the company's leased manufacturing facility in Burlington, Ontario, Canada. Also, approximately 300 employees will transition with the business. The company said the decision reflects its continued commitment to optimize portfolio and reallocate resources to its core growth brands.
The company expects the divestiture to be dilutive to adjusted earnings per share by approximately $0.25 on a full-year basis. The company anticipates using the net proceeds from the transaction to pay down debt, which will contribute an earnings per share benefit of approximately $0.10 on a full-year basis.
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