J M Smucker has finalised an agreement to sell its Crisco oils and shortening brand to B&G Foods in a $550m cash transaction.

According to the agreement, B&G Foods will acquire a manufacturing facility and a warehouse in Cincinnati, Ohio.

The business’s approximately 160 employees will also transition to B&G Foods, which manufactures frozen foods.

The divestiture of the Crisco business is part of J M Smucker’s previously announced plan to exit the US baking category.

The company now intends to focus more on its core growth platforms such as pet food, coffee and snacks.

J M Smucker president and CEO Mark Smucker said: “Crisco is an iconic brand that is beloved by consumers, and the business has been a solid contributor to our financial performance.

“However, our strategic priorities include an increased focus and allocation of resources toward pet food and pet snacks, coffee, and snacking to maintain momentum in these categories.

“Today’s announcement helps position the company to further grow our core businesses and unlock value for our shareholders.”

B&G Foods will be financing the deal using cash on hand and revolving loans under its existing credit facility.

B&G Foods president and CEO Kenneth G Romanzi said: “Crisco is an excellent complement to our existing portfolio of brands, including our Clabber Girl and other baking powder brands.

“This acquisition is consistent with our longstanding acquisition strategy of targeting well-established brands with defensible market positions and strong cash flow at reasonable purchase price multiples.

“Crisco has a strong heritage, as the original all-vegetable shortening that transformed the way people bake and cook over 100 years ago. Crisco is the number one brand of shortening, the number one brand of vegetable oil and also holds a leadership position in other cooking oils and cooking sprays.”

Subject to the receipt of regulatory approvals, the deal is expected to close during the fourth quarter of this year.