J.M. Smucker to Acquire Wesson Oil from Conagra
The J. M. Smucker Company announced the signing of a definitive agreement to acquire the Wesson oil brand from Conagra Brands, Inc. The Wesson brand of edible oils has been trusted by consumers for over 100 years. The all-cash transaction, which the company will fund primarily with debt, is valued at approximately $285 million, prior to an expected tax benefit related to the acquisition with a present value of approximately $45 million.
Under the terms of the agreement, Conagra will continue to manufacture products sold under the Wesson brand and provide certain other transition services for up to one year following the close of the transaction. After the transition period, the company expects to consolidate Wesson production into its existing oils manufacturing facility in Cincinnati, Ohio.
"The addition of Wesson creates a strong complement to our Crisco brand," said Mark Smucker, chief executive officer. "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."
The transaction is subject to customary closing conditions, including receipt of required regulatory approvals.
Conagra Brands ranked 34th on CGT's list of the Top 100 Consumer Goods Companies for 2016.