J. M. Smucker Announces Agreement To Acquire Fruit Ingredient Plant in Brazil
ORRVILLE, Ohio, Oct. 12 /PRNewswire/ -- The J. M. Smucker Company, Orrville, Ohio (NYSE: SJM.A and SJM.B), announced today that it had reached an agreement in principle to acquire a fruit ingredient production facility in Brazil from Danone S.A., the Brazilian affiliate of The Danone Group of France. Smucker has been a supplier of fruit ingredients to Danone's U.S. affiliate, The Dannon Company, Inc., for over twenty years.
The facility being acquired is in Sao Jose do Rio Pardo in the State of Sao Paulo and has been Danone's primary source for fruit ingredients for its yogurt products in Brazil. The transaction will include a supply agreement pursuant to which Smucker will use the facility to supply Danone's Brazilian fruit preparation needs. No other terms of the transaction were announced. According to the Company, the transaction is expected to be completed by the beginning of December.
The Sao Jose do Rio Pardo plant will be Smucker's first operation in Brazil and its industrial business area's second facility outside the United States. Earlier this year, Smucker established a fruit preparation plant in Livingston, Scotland, where it is supplying fruit fillings to Kellogg Company for use in Kellogg's Nutrigrain bars distributed in the United Kingdom.
The J. M. Smucker Company is the nation's leading producer of branded preserves, jams, jellies, and other fruit spread products, health and natural foods beverages, ice cream toppings, and natural peanut butter.
SOURCE J.M. Smucker Company
