Parsippany-based B&G Foods Inc. said Tuesday it is buying Crisco for $550 million in cash from JM Smucker Co.
The deal, expected to close during the fourth quarter of 2020, covers Crisco-branded baking powder brands, oils and shortening products; certain trademarks and licensing agreementsl and manufacturing and warehouse facilities in Cincinnati.
Approximately 160 employees supporting the Crisco business will also be transferred to B&G.
JM Smucker said in a press release that the business generated net sales of approximately $270 million for the fiscal year ending April 30, 2020, which were primarily reported in its U.S. Retail Consumer Foods segment.
In its own announcement on the deal, B&G projects the acquired business will continue to benefit form increased demand due to the COVID-19 pandemic in 2021.
“We are very excited to add the iconic Crisco brand to the B&G Foods portfolio,” B&G President and Chief Executive Officer Kenneth Romanzi said in a prepared statement. “Crisco is an excellent complement to our existing portfolio of brands, including our Clabber Girl and other baking powder brands.
“This acquisition is consistent with our longstanding acquisition strategy of targeting well-established brands with defensible market positions and strong cash flow at reasonable purchase price multiples,” he continued. “Crisco has a strong heritage, as the original all‑vegetable shortening that transformed the way people bake and cook over 100 years ago. Crisco is the No. 1 brand of shortening, the No. 1 brand of vegetable oil and also holds a leadership position in other cooking oils and cooking sprays.”