J.M. Smucker has announced plans to sell its US canned milk brands and operations to Eagle Family Foods Group, a subsidiary of Kelso & Co., for an undisclosed sum.
The disposal includes canned milk products primarily sold in US retail and foodservice channels under the Eagle Brand and Magnolia brands, along with other branded and private-label trade names. Thw unit generates annual net sales of approximately US$200m.
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Eagle Family Foods will also take control of manufacturing facilities in El Paso, Texas, and Seneca, Missouri.
The agreement does not include the Smucker's canned milk business in Canada. It is expected to close by the end of this year.
Additional terms and conditions were not disclosed but Smucker said it will discuss the transaction's impact on its full-year fiscal 2016 outlook when it releases its fiscal 2016 second-quarter results on 19 November.
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