The J. M. Smucker Co. entered into a definitive agreement to sell its U.S. canned milk brands and operations to Eagle Family Foods Group LLC, a subsidiary of funds affiliated with Kelso & Co. The transaction includes canned milk products that are primarily sold in U.S. retail and foodservice channels under the Eagle Brand® and Magnolia® brands, along with other branded and private label trade names, with annual net sales of approximately $200 million. The company's manufacturing facilities in El Paso, Texas, and Seneca, Missouri, will be included in the transaction. The transaction does not include the Company's canned milk business in Canada.
The transaction is expected to close by the end of calendar 2015. Additional terms and conditions of the transaction were not disclosed. The company will discuss the transaction's impact on its full-year fiscal 2016 outlook when it releases its fiscal 2016 second quarter results on Nov. 19, 2015.