Photography courtesy J.M. Smucker Co.
J.M. Smucker Co. has sold several of its pet food brands to Missouri-based CPG holding company Post Holdings, Inc. for $1.2 billion.
The deal includes Rachel Ray, Nutrish, 9Lives, Kibbles ‘n Bits, Nature’s Recipe and Gravy Train, as well as the company’s private label pet food business and its manufacturing and distribution facilities in Bloomsburg, Pennsylvania and Lawrence, Kansas.
A group of employees will transition to Post Holdings.
"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, at J.M. Smucker Co., in a statement. "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 $1.2 billion consists of $700 million in cash and approximately 5.39 million shares of common stock of Post Holdings.
The transaction is expected to close in the fourth quarter of the company's current fiscal year ending April 30.