J.M. Smucker Co., Orrville, Ohio, announced that it intends to divest International Multifoods' U.S. foodservice and bakery products businesses. Smucker purchased Minneapolis-based International Multifoods this summer for $840 million.
J.M. Smucker's strategy is to own and market leading North American icon brands sold in the center of the store, according to company documents. With the acquisition of Multifoods, the company added a significant array of brands, which complement existing Smucker brands. However, the U.S. foodservice and bakery products businesses acquired with Multifoods are not aligned with the company's strategy.
For Multifoods' 2004 fiscal year ended Feb. 28, 2004, the Foodservice Products Segment had net sales of $202.5 million.