JTM Foods finalizes acquisition of Big Texas, Cloverhill brands
USA – JTM Foods, LLC, has completed its acquisition of the Big Texas and Cloverhill brands, along with several private label products from The J.M. Smucker Company based in Orrville, Ohio, for approximately US$40 million.
Initially announced in early February, the acquisition deal also includes a manufacturing plant in Chicago that employs 400 workers.
According to Smucker, the divested brands are projected to generate around US$60 million in revenue by 2025. The transaction is expected to close in the fourth quarter of the current fiscal year, which ends on April 30, 2025.
RBC Capital Markets, LLC served as the financial advisor for The J.M. Smucker Company, while Benesch, Friedlander, Coplan & Aronoff LLP acted as its legal advisor.
J.M. Smucker stated that this divestiture aligns with the company’s ongoing commitment to optimize its portfolio and focus its resources on advancing the Hostess brand, enhancing its leadership in the sweet baked goods category.
Hostess Brands acquired both Big Texas and Cloverhill in 2018, then in 2023, J.M. Smucker acquired Hostess Brands, in a US$5.6 billion cash and stock deal.
JTM Foods expressed enthusiasm for the acquisition, stating in a LinkedIn post on March 4 that they look forward to increased growth and the continued satisfaction of their customers while consistently delighting them.
Products sold under the Big Texas and Cloverhill brands include cinnamon rolls, honey buns, and pastries.
JTM Foods specializes in manufacturing handheld pies and marshmallow rice treats, marketed under brands such as JJ’s Bakery and Cookies-n-Milk, as well as various store brands for retailers.
“This divestiture reflects our continued commitment to portfolio optimization to support the execution of our sweet baked snacks strategy, which focuses on growing the Hostess brand and solidifying our leadership in the sweet baked goods category. This decision is part of our ongoing efforts to ensure our manufacturing network is optimized to mitigate costs and reduce complexity,” Dan O’Leary, senior vice president and general manager of Smucker’s sweet baked snacks and pet food segment, said.
The transaction is anticipated to impact J.M. Smucker’s fiscal year 2025 net sales by approximately US$10 million, with an immaterial effect on full-year adjusted earnings per share.
The J.M. Smucker Company is listed on the New York Stock Exchange and ranks 426th on the Fortune 500 list.
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