Oct 22 (Reuters) - J.M. Smucker said on Tuesday

it would sell its cookie brand, Voortman, to U.S.-based premium

snacks maker Second Name Brands in a $305 million all-cash deal.

The Jif peanut butter maker, which was exploring a sale of

Voortman in July as reported by Reuters citing sources, said the

divestiture is a part of its efforts to focus on its core growth

brands including Cafe Bustelo and Uncrustables.

The transaction includes all Voortman trademarks and J.M.

Smucker's leased manufacturing facility in Ontario, Canada, the

company said, adding that about 300 employees would transition

with the business.

Shares of the company were down about 2% in the morning

trade amid broader market declines.

The Dunkin' coffee maker said it expects the divestiture

would be dilutive to the company's adjusted earnings per share

by about 25 cents on a full-year basis.

The company expects to use net proceeds from the transaction

to pay down debt. The deal, expected to close in the third

quarter of the fiscal year ending April 30, would contribute a

full-year earnings per share of about 10 cents to Smucker.

Packaged food companies have been shedding their

underperforming units to sharpen their focus on stronger brands

as they respond to consumers switching to cheaper alternative to

higher-margin brands.

"The divestiture ... will enable the execution of our Sweet

Baked Snacks strategy through dedicated focus and ongoing

investments in the Hostess brand," CEO Mark Smucker said in a

statement.

Industry peer General Mills ( GIS ) also announced a sale of

its North American yogurt business on Sept. 12.

Goldman Sachs is J.M. Smucker's financial adviser on the

deal.