J. M. Smucker Co. is selling its U.S. canned milk business to Eagle Family Foods Group LLC, a subsidiary of funds affiliated with Kelso & Co. for an undisclosed amount.
The deal includes canned milk products that are sold in U.S. retail and foodservice channels under the Eagle Brand® and Magnolia® brands, along with other branded and private label trade names, according to a press release.
“Although Eagle Brand fits nicely within our strategy and vision of owning and marketing leading brands, the larger part of the business is private label, which is outside of our strategic direction and scope,” Smucker said, according to a Reuters report.
The business recorded annual net sales of approximately $200 million.
Smucker said that the company’s manufacturing facilities in El Paso, Texas, and Seneca, Missouri, will be included in the transaction. Smucker’s canned milk business in Canada, however, will not be included.
The deal is expected to close by the end of this year.
