SJM - The J.M. Smucker to divest Natural Balance business
The J.M. Smucker (SJM) entered into a definitive agreement to sell its Natural Balance premium pet food business to Nexus Capital Management, in a cash transaction valued at ~$50M (subject to a working capital adjustment and before a one-time cash tax benefit to be realized on the sale).The business generated net sales of ~$220M for the company's FY ended April 30, 2020, which were reported in its U.S. Retail Pet Foods segment."Today's announcement helps the company further focus on the core brands within our pet food and pet snacks portfolio including Rachael Ray Nutrish, Milk-Bone and Meow Mix among others, which together create a unique portfolio with significant long-term growth potential that meets consumer needs across value, mainstream and premium offerings," president & CEO Mark Smucker commented.J.M. Smucker anticipates the divestiture to be dilutive to its FY adj. EPS in the range of $0.05 to $0.10 reflecting the foregone profit related to the Natural Balance business, before factoring in
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The J.M. Smucker to divest Natural Balance business