Credit Suisse assesses J.M. Smucker's (SJM -2.4%) sale of the U.S. baking business to Brynwood Partners.
"The EPS dilution is in-line with what we have been modelling since April when management announced its intention to explore a sale. However, the proceeds of $375M (or roughly 1x sales) fell below what we had expected," reads the firm's post-sales announcement update.
CS keeps an Underperform rating on Smucker and price target of $95 (a forward EV/EBITDA multiple of 10.2X the FY20 EBITDA estimate).
Previously: J.M. Smucker sells baking brands (July 9)
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