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J.M. Smucker Prepares to Sell Premium Pet Food Brand

The sale includes the Natural Balance brand products, as well as certain trademarks and licensing agreements.

Powder Bulk Solids Staff

December 7, 2020

1 Min Read
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Image courtesy of The J.M. Smucker Company

American food manufacturer The J.M. Smucker Company signed a definitive agreement to divest its Natural Balance premium pet food business to Nexus Capital Management LP, the company announced in a recent release. The $50 million transaction includes Natural Balance brand products, some employees that support the business, and certain trademarks and licencing agreements.

“The divestiture reflects our strategy to direct investments and resources toward areas of the business that will generate the greatest growth and profitability,” Mark Smucker, president and chief executive officer of J.M. Smucker, said in a statement. “Today’s announcement helps the company further focus on the core brands within our pet food and pet snacks portfolio including Rachael Ray Nutrish, Nutrish, Milk-Bone and Meow Mix among others, which together create a unique portfolio with significant long-term growth potential that meets consumer needs across value, mainstream and premium offerings.”

Natural Balance brought in net sales of $220 million during J.M. Smucker’s fiscal year that ended April 30, 2020. J.M. Smucker plans to address the impact of the transaction on its fiscal year 2021 outlook in its third quarter results, which are scheduled to be released this February.

The transaction is expected to reach completion in the third quarter of the company’s 2021 fiscal year after completing customary closing conditions.

Powder & Bulk Solids reported in October that J.M. Smucker entered into a deal to sell its Crisco oils and shortening business to B&G Foods Inc. That transaction was valued at $550 million.

About the Author(s)

Powder Bulk Solids Staff

Established in 1983, Powder & Bulk Solids (PBS) serves industries that process, handle, and package dry particulate matter, including the food, chemical, and pharmaceutical markets.

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