Thursday, June 1, 2017
J. M. Smucker Co. is acquiring the Wesson oil brand from Conagra Brands Inc. for about US$285 million, according to a Reuters report.
Conagra will continue to manufacture products sold under the Wesson brand for up to one year following the acquisition, after which Wesson will be merged into J.M. Smucker's oils manufacturing facility in Cincinnati, Ohio, the company said.
The acquisition of the Wesson brand – which includes vegetable, canola, corn and blended oils – is expected to bolster Smucker's own Crisco oil brand, J.M. Smucker CEO Mark Smucker said.
The deal marks another step by Chicago-based Conagra, which has been divesting many of its private label and condiment businesses to become a branded foods-only company, Reuters reports.
Conagra last year sold its loss-making private-label business to TreeHouse Foods Inc. and spun off its Lamb Weston frozen potato business.