The American manufacturer announced it divested its pet portfolio to consumer conglomerate Post Holdings for $1.2 billion.
Post is also taking over the Ohio-headquartered food producer’s manufacturing and supply facilities in Bloomsburg, Pennsylvania, and production lines in Meadville, Pennsylvania, and Lawrence, Kansas.
In addition to brands Rachael Ray, Nutrish, Nature’s Recipe, 9Lives, Kibbles ‘n Bits, and Gravy Train, the company also took J.M. Smucker’s private label business.
These pet food brands generated sales of $1.4 billion (€1.30B) in the year ending 30 April 2022 and are expected to bring in nearly $1.5 billion (€1.4B) in FY 2023.
Mark Smucker, President and CEO of J.M. Smucker, said that the divestiture is in line with its approach to prioritize investments and resources of the business that offer the “strongest growth and profit potential.”
More investments to come?
Post Holdings stated that the acquisition is a “compelling entry point into the attractive and growing” pet food sector. Furthermore, it anticipated additional investment opportunities in the pet food segment to come up in the future.
Transfer completion is expected by 30 April 2022, after which Post will set up a new pet food platform within its Post Consumer Brands portfolio.
Nicolas Catoggio will remain in his current role as president and CEO of Post Consumer Brands. He will expand his role to include responsibilities related to the new pet food business.
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