US food major J.M. Smucker is selling its Sahale Snacks business to Second Nature Brands for $34m.
The deal comes just weeks after Smucker confirmed a deal to buy US sweet-snacks Hostess Brands for $5.6bn.
Ohio-based J.M. Smucker said the Sahale disposal is consistent with a “portfolio and resource optimisation” plan that also saw it offload a group of pet-food brands to another US food manufacturer, Post Holdings, for $1.2bn in February.
With annual net sales of more than $48m, Sahale is a manufacturer and marketer of premium nut and fruit snack mixes, sold across the US and internationally under the Sahale Snacks brand.
Detroit-headquartered Second Nature Brands is a manufacturer of better-for-you snacks and treats which operates in the premium end of the category.
Speaking about the disposal, J.M. Smucker CEO Mark Smucker said: "The divestiture of the Sahale Snacks brand will support continued growth in our consumer foods business with enhanced investment in our Smucker's Uncrustables brand and building on our leadership in spreads.
"This divestiture reflects our continued commitment to portfolio and resource optimisation to sharpen our focus and support continued growth."
The transaction includes all trademarks and Sahale’s leased manufacturing facility in Seattle. Around 100 employees will transition with the business on completion of the deal.
Second Nature Brands’ portfolio includes Kar's Nuts, Second Nature Snacks, Sanders and Brownie Brittle, which it acquired in December.
The company, owned by private-equity firm CapVest, said the acquisition of Sahale forms part of its plans to “significantly accelerate the growth of the business and position Second Nature Brands as a US leader in snacks and treats”.
Victor Mehren, Second Nature’s CEO, said: "Sahale Snacks adds a fantastic super-premium product to our range, considerably broadens our snack mix and nut portfolio and unlocks significant new opportunities for us to help grow the category, which we are very excited about.
“We see significant opportunity to build on its success to date to drive innovation, brand penetration and growth."
Following J.M. Smucker’s deal to buy Twinkies and Voortman cookie brands owner Hostess Brands, Mark Smucker was quizzed by analysts – in the context of a US anti-obesity drive – on the appetite for indulgent snacks, such as Hostess Brands’ Kazbars cakes and Cloverhill honey buns.
Defending the move, he described Hostess as the “fastest-growing, pure-play snacking company that manufactures and markets sweet baked goods and cookies in North America”.
