Consumer food and beverage firm J.M. Smucker signed on 30 May a US$285M agreement with packaged food company Conagra Brands to acquire its Wesson brand of edible oils.

Under the contract, Conagra will continue to manufacture the Wesson brand – which includes vegetable, canola, corn and blended oils – for up to one year following the closing of the transaction, to provide Smucker with a transitory period.

Smucker was planning to settle the manufacture of Wesson products into its existing oils production facility in Cincinnati, Ohio, USA, the company said in a statement.

J.M. Smucker CEO Mark Smucker said the Wesson brand was strongly complementary with the company’s existing and well-known Crisco brand of products.

“By allowing us to more efficiently use existing supply chain and go-to-market resources, this acquisition will lead to significant cost savings that can further fuel growth and innovation opportunities across [our] company,” Smucker said.

The firm expected the acquisition to generate additional annual net sales of US$230M and generate EBITDA of approximately US$30M.

The Wesson deal was another step in Conagra’s plan to divest several of its private label and condiment businesses in order to reform itself as a branded goods-only company, Reuters wrote on 30 May.

According to the news agency, Conagra sold its loss-making private label business to TreeHouse Foods in 2016 and also spun off its Lamb Weston frozen potato business.