J.M. Smucker divests several pet food brands

J.M. Smucker is selling several pet food brands to Post Holdings, a consumer packaged goods holding company headquartered in St. Louis, Miss. The transaction is valued at approximately US$1.2 billion, consisting of US$700 million in cash and approximately 5.39 million shares of common stock of Post Holdings.

The transaction includes the Rachael Ray Nutrish, 9Lives, Kibbles ‘n Bits, Nature’s Recipe, and Gravy Train brands as well as the Company’s private label pet food business, relevant trademarks and licenses, and the Company’s manufacturing and distribution facilities in Bloomsburg, Pa., and manufacturing facilities in Meadville, Pa., and Lawrence, Kan. Additionally, a group of employees will transition to Post Holdings to support the business. The Company expects these brands to generate net sales of approximately US$1.5 billion for the fiscal year ended April 30, 2023, which are primarily 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, board chair, 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.”