US-based food company J.M. Smucker Company has signed a definitive agreement to acquire the Wesson oil brand from Conagra Brands.  

J.M. Smucker Company will fund the $285m all-cash transaction through debt.

According to the agreement, Conagra will continue to manufacture Wesson products and offer transition services for a one-year period following closure of the transaction.

Upon completion of the transition period, J.M. Smucker Company intends to merge Wesson production into its existing oils manufacturing facility in Cincinnati, Ohio.

J.M. Smucker Company chief executive officer Mark Smucker said: "The addition of Wesson creates a strong complement to our Crisco brand.

"By allowing us to more efficiently use existing supply chain and go-to-market resources, this acquisition will lead to significant cost savings that can further fuel growth and innovation opportunities across the company." 

The company anticipates the acquisition to add annual net sales of nearly $230m.

The transaction is subject to customary closing conditions, including regulatory approvals.

J.M. Smucker is a manufacturer of consumer food and beverage products, as well as pet food and snacks in North America.

Its brands include Smucker's, Folgers, Jif, Dunkin' Donuts and Crisco.