J. M. Smucker Co (SJM.N) said it would sell its U.S. canned milk brands and operations to Eagle Family Foods Group LLC, a unit of private equity firm Kelso & Co.
Smucker, known for its Folgers coffee and Jif peanut butter, bought Eagle Family Foods Co in 2007 for $248 million.
The company did not disclose financial terms of Tuesday’s deal.
Smucker said the business sells canned milk products under the Eagle and Magnolia brands and other private label trade names and rakes in about $200 million in annual net sales.
The company’s manufacturing facilities in El Paso, Texas, and Seneca, Missouri, will also be included in the transaction.
The deal, which is expected to close by the end of 2015, does not include Smucker’s canned milk business in Canada.
Milk sales have been falling in the United States despite low prices.