Magnola and Eagle Brand canned milk
Smucker’s canned milk business includes such brands as Eagle Brand and Magnolia.

NEW YORK – Private equity firm Kelso & Co. has entered into an agreement with the J.M. Smucker Co. to acquire Smucker’s canned milk business, which includes such brands as Eagle Brand and Magnolia, and two manufacturing plants. Terms of the agreement were not announced.

The business generates approximately $200 million in sales, and products are sold in the retail and food service channels. The manufacturing plants included in the agreement are in El Paso, Texas, and Seneca, Mo. The agreement does not include Smucker’s canned milk business in Canada.

The transaction is expected to close by the end of the year.

Based in New York, Kelso & Co. has raised a total of eight private equity funds that represent $9.8 billion of capital, and the firm has made over 110 investments. Recent investments include Ajax Resources, an oil and gas exploration company, and 4Refuel, a fuel management services business in Canada.

Smucker acquired Eagle Family Food Holdings in April of 2007 for approximately $248 million.