Conagara Brands Inc. (CAG) has agreed to sell the Wesson oil brand to J.M. Smucker Co. (NYSE: SJM) for $285 million. The deal comes as several consumer conglomerates are reshaping their portfolios through M&A.

Wesson produces vegetable, corn and canola oil. Smucker expects the acquisition to add about $230 million in annual net sales and around $30 million in Ebitda. The company says Wesson will complement Smucker's Crisco oil brand.

"We continue to reshape our portfolio and focus our resources on priorities that support Conagra's business strategy and drive value creation for shareholders," says Conagra CEO Sean Connolly. Conagra will continue to produce Wesson for up to one year after the transaction closes.

Chicago-based Conagra has been busy buying and shedding assets. In 2017, Conagra bought meat snacks maker Thanasi Foods; In 2016, the company completed the spinoff of the Lamb Weston frozen fries division; Also in 2016, Conagra sold the Spicetec seasonings and flavors business to Givaudan; And in that same year, Conagra sold food ingredients distributor JM Swank to Platinum Equity.

A number of consumer companies have been reshuffling their portfolios through M&A in an effort to boost profitability. Newell Brands Inc. (NYSE: NWL) has agreed to sells its winter sports unit to Kohlberg & Co.; Church & Dwight Co. (NYSE: CHD) sold the Cameo copper and brass cleaner, Snobol toilet bowl cleaner and the Parsons’ ammonia brands to Brillo owner Armaly Brands; and Prestige Brands Holdings Inc. (NYSE: PBH) divested the Fiber Choice, New Skin and PediaCare brands.

Smucker, located in Orrvile, Ohio, and known for Smucker's jam and Jif peanut butter, has been expanding through M&A. In 2015, the company sold its U.S. canned milk brands to Kelso-backed Eagle Family Foods Group LLC and purchased pet foods company Big Heart Pet brands.

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Demitri Diakantonis

Demitri Diakantonis

Demitri Diakantonis serves as Assistant Managing Editor. He joined Mergers & Acquisitions in 2015 as a Senior Reporter.