Food manufacturer JM Smucker Company has signed a definitive agreement to sell its US baking business to Brynwood Partners’ subsidiaries Brynwood Partners VII and Brynwood Partners VIII for $375m.

The deal covers products sold under the Pillsbury, Martha White, Hungry Jack, White Lily and Jim Dandy brands, along with all relevant trademarks and licensing agreements.

It also includes the acquisition of JM Smucker’s manufacturing facility in Toledo, Ohio.

"Pillsbury, Martha White and Hungry Jack remain iconic brands, and although they no longer align with our strategic priorities, we are confident they will be nurtured at Brynwood."

The company’s US baking business generated net sales of roughly $370m during the last fiscal year, ended 30 April.

The transaction is noted to exclude the company’s baking business in Canada.

JM Smucker president and CEO Mark Smuckers said: “The divestiture reflects our strategy to further focus our portfolio and develop a stronger presence in pet food, coffee, and snacking, all large, growing categories with sustainable growth projections.

“Pillsbury, Martha White and Hungry Jack remain iconic brands, and although they no longer align with our strategic priorities, we are confident they will be nurtured at Brynwood.

“While the decision to divest these brands was difficult, it underscores our commitment to allocating resources toward those areas of the business critical to our growth.”

JM Smucker expects that the divestiture will be dilutive to its adjusted earnings per share by $0.25 to $0.30 on a full-year basis, which reflects foregone profit related to the US baking business prior to factoring in any potential benefit from the use of proceeds from the sale.

The deal is subject to customary closing conditions and regulatory approvals, and is slated for completion in the second quarter of JM Smucker’s 2019 fiscal year.