Sweet Deal: Smucker Divests More Brands to Prioritize Hostess

J.M. Smucker is continuing to cull its portfolio, announcing on Friday it has agreed to sell its Cloverhill and Big Texas value-positioned brands, as well as certain private label products, to JTM Foods, LLC in a deal valued at approximately $40 million.

The all-cash transaction, coming just four months after the company offloaded Voortman Bakery to Second Nature Brands in a $305 million deal, includes trademarks and licenses, a manufacturing facility in Chicago, Ill., and around 400 employees who will transition with the business. The deal is expected to close in the fourth quarter of Smucker’s fiscal year, which ends in April.

According to Dan O’Leary, SVP and general manager of Sweet Baked Snacks and Pet, the divestment reaffirms Smucker’s continued commitment to portfolio optimization and “support[s] the execution of our Sweet Baked Snacks strategy, focusing on growing the Hostess brand.” The deal comes 15 months after Smucker acquired the value-positioned brands in its $5.6 million purchase of Hostess.

During its Q2 2025 earnings call in November, the company noted the underperformance of Hostess. Smucker attributed the brand’s disappointing sales performance to two factors: selective consumer spending related to inflationary pressures and weak distributing/merchandising.

For the Uncrustables and Folgers maker, the deal further solidifies its drive to become a leader in the sweet baked goods segment by focusing on Hostess.

“This decision continues the ongoing work to ensure our manufacturing network is optimized to mitigate costs and reduce complexity,” O’Leary said in a press release.

Founded in 1986, JTM Foods, LLC produces mini pies and crispy rice treats under the JJ’s Bakery brand. The Pennsylvania-based company, which has an 80,000 sq. ft. facility in Erie, also serves as a co-manufacturer for private label brands. The acquisition of Cloverhill and Big Texas adds breakfast items like honey buns, cinnamon rolls and danishes to its portfolio.

According to a press release, the divested brands and private label products generated approximately $30 million in net sales for Smucker’s fiscal year ended April 30, 2024. For the current fiscal year, the company anticipates that full-year net sales from the divested brands and products will be approximately $60 million.

“JTM Foods is pleased and proud to welcome one leading Chicago bakery, two iconic brands and 400 capable and committed associates with the acquisition agreement,” wrote JTM Foods, LLC, in a LinkedIn post. “While we finalize the details, it’s business as usual.”

RBC Capital Capital Markets, LLC, is serving as Smucker’s legal advisor, and Benesch, Friedlander, Coplan & Aronoff LLC is serving as its legal advisor for the transaction.