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John S. Forrester
February 1, 2021
1 Min Read
Image courtesy of J.M. Smucker
American food manufacturer The J.M. Smucker Co. has wrapped up the $50 million sale of its Natural Balance premium pet food business to Nexus Capital Management LP, including the business’ portfolio, certain trademarks and licensing agreements and a group of employees who support the brand, a recent company release announced.
“The closing of this transaction supports our priority to focus on the core brands within our pet food and pet snacks portfolio, including Rachel Ray Nutrish, Milk-Bone and Meow Mix among others, which create a unique portfolio with significant long-term growth potential that meets consumer needs across value, mainstream and premium offerings,” the firm’s president and chief executive officer, Mark Smucker, said in a statement.
J.M. Smucker said its decision to divest the business is part of its strategy to invest in parts of its business that will generate the greatest growth and profits. Natural Balance brought in net sales of $220 million during the firm’s fiscal year that ended April 30, 2020.
Impacts on the company’s fiscal year 2021 outlook will be discussed when J.M. Smucker releases its third quarter results. The firm’s release said it expects the transaction will be “immaterial” on its fiscal 2021 earnings.
Plans for the divestiture were first announced by J.M. Smucker in December 2020, Powder & Bulk Solidsreported. Last October, the company entered into a deal to sell its Crisco oils and shortening business to B&G Foods Inc. That transaction was valued at $550 million.
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