Orrville / OH. (sc) The J. M. Smucker Company announced the closing of the transaction to divest its natural and organic beverage and grains businesses to Nexus Capital Management LP in a cash transaction valued at USD 110 million, subject to a working capital adjustment. The Company previously announced the signing of a definitive agreement in December 2021.
The transaction encompasses «R.W. Knudsen» and «TruRoots» assets and trademarks, and a licensing agreement for «Santa Cruz Organic» beverages. The transaction also includes the Company’s manufacturing and distribution facilities in Chico, California, and Havre de Grace, Maryland. The divestiture supports the Company’s strategy to focus resources on core brands positioned for growth. Through this approach, the Company is positioned to build on its market leadership while continuing to support the growth of the overall category.
«With the close of this transaction, we are now able to increase our focus and resources on supporting our core brands to deliver continued growth,» said Tina Floyd, Senior Vice President and General Manager, Consumer Foods. «We are confident in the continued momentum of our consumer foods strategy and excited about the opportunities to build on our leadership position.»
Collectively, the natural beverage and grains businesses generated net sales of approximately USD 140 million for the Company’s fiscal year ended April 30, 2021, which were primarily reported in its U.S. Retail Consumer Foods segment.
«We are extremely excited by the opportunity to acquire the Smucker’s Natural Beverage and Grains businesses,» said Damian Giangiacomo, Partner at Nexus. «We believe in each of the brand’s strong legacy and the ability to grow the business as an independent company in partnership with a strong management team, led Bobby Chacko as Chairman and CEO.»
Chacko previously held leadership roles at Ocean Spray, Mars Inc., and The Coca-Cola Company.
«Bobby is a dynamic CPG executive with a successful track record of generating strong innovation and growth,» said Daniel Flesh, Partner at Nexus. «His leadership and expertise will be critical as we develop this new plant-based consumer platform.»
The J.M. Smucker Co. expects the divestiture to be dilutive to its adjusted earnings per share by approximately USD 0.15 on a full-year basis, reflecting the foregone profit related to the natural and organic beverages and grains businesses, before factoring in any potential benefit from the use of net proceeds from the sale. The Company will provide additional information about the transaction’s impact on its fiscal year 2022 outlook when it reports its third quarter results.
OTHER TOPICS FROM THIS SECTION FOR YOU:
- Cloetta AB: announces Q2-2024 interim report
- Axfood AB: Reports Q2-2024 Financial Results
- Chef Robotics: Launches AI-Powered Food Robot
- Conagra Brands: Reports Fourth Quarter 2024 Results
- Limerston Capital sells Village Bakery to Groupe Menissez
- GrubMarket: Buys Major Foodservice Company in Texas
- Lantmännen acquires Entrack AB
- DPC Dash: Concludes H1-2024 with Sustained Expansion
- Norway: Orkla Food Ingredients acquires FDE
- Fondo Italiano d’Investimento co-invests in Casa della Piada
- Greggs: invests in a new frozen manufacturing and logistics site
- Bundeskartellamt imposes fine against «Fritz!» manufacturer AVM
- Yum China: Celebrates Opening of its 200th KCoffee Store
- Beijing intends to roll out 5’400 food production robots
- K-Citymarket: sees significant sales growth in Finland
- DPC Dash: reaches 900-store milestone in China
- Coffee Holding: Terminates Merger with Delta Corp Holdings
- Perkins Restaurant + Bakery: introduces new brand identity
- Engelmans Bakery: acquires St. Armands Baking Company
- National DCP: Breaks Ground on New Distribution Center