The J.M. Smucker Co. to Sell Pet Food Brands as Part of Growth Strategy

The J.M. Smucker Co. announced it is selling several of its pet food brands to Post Holding Inc.

The sale includes the Rachael Ray Nutrish, 9Lives, Kibbles ’n Bits, Nature's Recipe, and Gravy Train pet food brands, as well as the company's private label pet food business. The transaction includes relevant trademarks and licenses, and the company's manufacturing and distribution facilities in Bloomsburg, PA, as well as its manufacturing facilities in Meadville, PA and Lawrence, KS.

In addition, a group of employees will transition to Post Holdings to support the business. The company expects these brands to generate net sales of approximately $1.5 billion for the fiscal year ended April 30, 2023, which are usually reported in the U.S. Retail Pet Foods segment.

“This divestiture supports our strategy to prioritize investments and resources in the areas of our business that offer the strongest growth and profit potential. In our pet business this is reflected in our focus on dog snacks and cat food, anchored by our Milk-Bone and Meow Mix brands, respectively,” said Mark Smucker, chair of the Board, president and CEO. “Portfolio optimization and strategic resource allocation remain key drivers of our long-term growth. The execution of this proven strategy has helped us streamline our business, improve margin mix, and position the company to deliver continued shareholder value.”

The transaction is expected to close in the fourth quarter of the company’s current fiscal year ending April 30, 2023, subject to closing conditions. The transaction is valued at approximately $1.2 billion, with $700 million in cash and approximately 5.39 million shares of common stock of Post Holdings Inc.