J.M. Smucker Company on Tuesday announced an agreement to sell its canned milk operations in the U.S. to private equity firm Kelso & Company.
The canned milk business — Eagle Family Foods — accounts for some $200 million in annual net sales and includes brands such as Eagle Brand and Magnolia along with private label trade names.
Smucker, which makes Smucker's spreads and toppings and also owns Folgers coffee and Jif peanut butter, said that the private label component of the business was "outside of our strategic direction and scope."
The transaction will also include manufacturing facilities in El Paso, Texas, and Seneca, Missouri. Smucker's Canadian canned milk operations are not included.
The deal is expected to be completed by the end of the calendar year. Further details were not disclosed.