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UPDATE 1-Conagra sells Wesson oil brand to J. M. Smucker

(Adds deal details)

May 30 (Reuters) - Packaged food maker Conagra Brands Inc said on Tuesday it would sell its Wesson cooking oil brand to Folgers coffee maker J. M. Smucker Co for about $285 million.

Conagra will continue to manufacture products sold under the Wesson brand for up to one year following the close, after which Wesson will be merged into J.M. Smucker's oils manufacturing facility in Cincinnati, Ohio.

The Wesson brand, whose product offerings include vegetable, canola, corn and blended oils, would bolster J.M. Smucker's own Crisco oil brand, J.M. Smucker Chief Executive Mark Smucker said in a statement.

J.M. Smucker said it expects annual cost synergies of about $20 million within two years after the deal's closing.

J. M. Smucker expects the deal to add about 10 cents per share to its adjusted earnings in the first full-year after close.

Chicago-based Conagra has been divesting many of its private label and condiment businesses to become a branded foods-only company.

Conagra last year sold its loss-making private-label business to TreeHouse Foods Inc and spun off its Lamb Weston frozen potato business.

The maker of Chef Boyardee pasta and Orville Redenbacher's popcorn also said in December that the company will be 91 percent branded after the spin-off of the Lamb Weston unit.

Conagra reported a better-than-expected third-quarter profit in March, as it discontinued sales of lower-margin products and cut back on discounts. (Reporting by Nikhil Subba and Gayathree Ganesan in Bengaluru; Editing by Sriraj Kalluvila and Maju Samuel)