J.M. Smucker, the company best known for Smucker’s jam, is selling off its baking brands—including Pillsbury.
Smucker (SJM) announced Monday that it would be selling all of its U.S. baking business to private equity firm Brynwood Partners for $375 million, including debt. The deal will include Pillsbury and Funfetti baking mixes, along with Hungry Jack pancakes, Martha White, White Lily, and Jim Dandy.
Smucker had put its baking business up for sale in April, as it has faced decreasing sales and generated just 5% of the company’s revenue. It had owned Pillsbury since 2004, at which time it bought the company long associated with its mascot, the Pillsbury Doughboy, for $840 million.
With changing consumer tastes, Smucker, like many other food companies, is diverting its efforts to investing in faster growing businesses, such as coffee. Smucker already owns Folgers coffee, and is reportedly planning to give the brand a premium makeover.
For its part, Brynwood sees an opportunity for growth. The firm’s CEO Henk Hartong told CNN that “The iconic portfolio of brands and the company’s strong Mid-Western manufacturing footprint will provide us with a solid platform to invest in and to grow.” Brynwood specializes in “carving out underperforming businesses from food giants” according to The Wall Street Journal, and already owns familiar brands like SunnyD and Juicey Juice.