USA: Smucker acquires Wesson brand from Conagra
US-based food producer JM Smucker has signed an agreement to acquire oil brand Wesson from Conagra Brands, where the all-cash transaction is estimated to be about $285 million.
Under the new agreement, Conagra, who is a North American packaged foods company, will remain as the producer of the Wesson branded products and provide certain other transition services for up to one year, which is then when the production will move into Smucker’s existing oils manufacturing facility in Cincinnati, Ohio.
Conagra last year sold off its private brands business and now is focusing on higher-margin products, whereas Smucker has been facing with declined profits since a year before. "By allowing us to more efficiently use existing supply chain and go-to-market resources, this acquisition will lead to significant cost savings that can further fuel growth and innovation opportunities across the Company" said Mark Smucker, chief executive officer.
Source: PR Newswire