SJM - J.M. Smucker divests private label dry pet food business; lowers FY22 revenue guidance

The J.M. Smucker (NYSE:SJM) has divested its private label dry pet food business as part of its continued portfolio optimization. The dry pet food business, including its manufacturing facility in Frontenac, Kansas, was sold to Diamond Pet Foods in a cash transaction valued at ~$33M. For the fiscal year ended April 30, 2021, the business generated net sales of ~$95M. The divestiture is immaterial to the company's adjusted EPS on a full-year basis. The transaction does not include any branded products or the company's private label wet pet food business. "This divestiture enables us to focus investments and resources on areas of our pet food and pet snacks business positioned for growth and profitability, including driving category growth in dog snacks, building upon our momentum in cat food—particularly with Meow Mix®, and stabilizing Nutrish® dog food by growing consumer demand," said Rob Ferguson, Sr. Vice President and General Manager, Pet

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J.M. Smucker divests private label dry pet food business; lowers FY22 revenue guidance