J.M. Smucker said on Monday it would sell its U.S. baking business, which includes brands such as Pillsbury, Martha White and Hungry Jack, to private equity firm Brynwood Partners for $375 million.
The deal includes a manufacturing facility in Toledo, Ohio, but excludes the baking business in Canada, the company said.
"The divestiture reflects our strategy to further focus our portfolio and develop a stronger presence in pet food, coffee, and snacking," Chief Executive Officer Mark Smucker said in a statement.
Smucker in May completed its $1.9 billion acquisition of Rachael Ray Dog food maker Ainsworth Pet Nutrition.
The company said it expected the divestiture to reduce adjusted earnings by 25 cents to 30 cents on a full-year basis, while net impact would be only slightly dilutive to its fiscal 2019 adjusted earnings per share.
The business generated net sales of about $370 million for its fiscal year ended April 30, the company said.
The transaction is expected to close in the second quarter of the company's 2019 fiscal year.