US food major J.M. Smucker has announced the sale of its Sahale Snacks business to Second Nature Brands for $34m. This comes shortly after Smucker’s acquisition of US sweet-snacks Hostess Brands for $5.6bn.
The sale of Sahale Snacks is part of Smucker’s ongoing “portfolio and resource optimization” plan, which also included the divestment of a group of pet-food brands to Post Holdings for $1.2bn earlier this year.
Sahale Snacks is a manufacturer and marketer of premium nut and fruit snack mixes, with annual net sales of over $48m. Second Nature Brands, based in Detroit, operates in the premium segment of the better-for-you snacks and treats category.
J.M. Smucker CEO Mark Smucker stated, “The divestiture of the Sahale Snacks brand will allow us to enhance our investment in our Smucker’s Uncrustables brand and further strengthen our leadership in spreads.”
The transaction includes all trademarks and Sahale’s manufacturing facility in Seattle. Approximately 100 employees will transition with the business upon completion of the deal.
Second Nature Brands, owned by private-equity firm CapVest, aims to significantly accelerate its growth and establish itself as a US leader in snacks and treats through the acquisition of Sahale.
Victor Mehren, Second Nature’s CEO, expressed enthusiasm for the deal, stating, “Sahale Snacks adds a fantastic super-premium product to our range, broadens our snack mix and nut portfolio, and presents substantial opportunities for innovation, brand penetration, and growth.”
Following Smucker’s recent acquisition of Hostess Brands, Mark Smucker defended the move in light of concerns over indulgent snacks, emphasizing Hostess as the “fastest-growing, pure-play snacking company that manufactures and markets sweet baked goods and cookies in North America.”
