JM Smucker Co. sells its natural and organic beverage and grain businesses for $ 110 million as it focuses on its core brands.
The $ 8 billion pet, coffee and personal food maker Orrville said Thursday it has reached a deal to sell its RW Knudsen and TruRoots brands for cash to Nexus Capital Management. The deal is expected to close in the third quarter of Smucker’s fiscal 2022.
This is the second divestiture of non-core businesses announced this month by Smucker.
Nexus Capital will acquire manufacturing and distribution facilities in California and Maryland as part of the agreement.
The Knudson and TruRoots brands, which are part of the company’s US Retail Food segment, achieved sales of approximately $ 140 million in fiscal 2021 from Smucker.
Smucker’s shares were down 3 cents to $ 134.70 at 9:37 am Thursday. Shares over the past 52 weeks have ranged from a low of $ 110.53 to a high of $ 140.65.
The sale includes a licensing agreement for organic Santa Cruz drinks, but does not include the sale of Santa Cruz organic nut butters, fruit spreads, syrups or applesauce, Smucker said in his press release. . The company has announced plans to close and sell a production facility in Wisconsin and consolidate production in Orrville in 2022.
“This transaction supports our strategy to direct investments and resources to key brands positioned for growth,” said Tina Floyd, Smucker’s senior vice president and general manager, Consumer Foods, in a press release. “By focusing our resources on our core brands, including Uncrustables, Jif and Smuckers sandwiches, we are positioning ourselves to strengthen our market leadership while continuing to support the growth of the global category. “
Smucker announced in November that he would spend $ 1.1 billion to build a new Uncrustables production facility in Alabama as part of the company’s long-term goal of increasing Uncrustables sales. to $ 1 billion per year.
Additionally, on December 1, Smucker announced the sale of its private label dry pet food business, including a Kansas manufacturing facility, for $ 33 million to Diamond Pet Foods Inc. This sale was intended to help Smucker focus on other areas of its pet food and pet snack businesses. The sale did not include any branded products or the private label wet pet food company Smucker.
Smucker’s divested dry pet food business generated sales of approximately $ 95 million for fiscal 2021.
Beacon Journal reporter Jim Mackinnon can be reached at 330-996-3544 or [email protected] Follow him @JimMackinnonABJ on Twitter or at www.facebook.com/JimMackinnonABJ.