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Jm Smucker 63e5243859350

J.M. Smucker Selling Five Brands, Private Label Pet-food Business to Post Holdings

Feb. 9, 2023
Post enters the pet-food business by acquiring the Rachael Ray Nutrish, 9Lives, Kibbles ‘n Bits, Nature’s Recipe and Gravy Train pet-food brands, and private-label business for approximately $1.2 billion.
The J.M. Smucker Co. has agreed to sell its Rachael Ray Nutrish, 9Lives, Kibbles ‘n Bits, Nature’s Recipe and Gravy Train pet-food brands, as well as its private-label pet-food business, to Post Holdings Inc.
The transaction is valued at approximately $1.2 billion, consisting of $700 million in cash and approximately 5.39 million shares of common stock of Post, and includes the manufacturing and distribution facilities in Bloomsburg and Meadville, Pa., and Lawrence, Kan.
J.M. Smucker expects these brands to generate net sales of approximately $1.5 billion for the fiscal year ended April 30, 2023, in the U.S. Retail Pet Foods segment. The company acquired the Rachael Ray pet food brands just five years ago.
Mark Smucker, chair of the Board, president and CEO, said the divestiture of these businesses supports prioritization of investments and resources around dog snacks and cat food brands Milk-Bone and Meow Mix, which it believes to offer the strongest growth and profit potential.
Meanwhile, the acquisition gives Post Holdings an entry point into the pet-food business. The company said in its own separate statement that it will create a new pet-food platform within Post Consumer Brands, with president and CEO Nicolas Catoggio managing both the North American ready-to-eat cereal and peanut butter business as well as the new pet-food business. More than 1,000 employees are expected to transition to Post Holdings employment through the acquisition.
The transaction is anticipated to close in the fourth quarter of J.M. Smucker’s current fiscal year ending April 30, 2023, and will be discussed by J.M. Smucker at the Consumer Analyst Group of New York conference Feb. 22, and in the release of third quarter fiscal financial results on Feb. 28.
About the Author

Andy Hanacek | Senior Editor

Andy Hanacek has covered meat, poultry, bakery and snack foods as a B2B editor for nearly 20 years, and has toured hundreds of processing plants and food companies, sharing stories of innovation and technological advancement throughout the food supply chain. In 2018, he won a Folio:Eddie Award for his unique "From the Editor's Desk" video blogs, and he has brought home additional awards from Folio and ASBPE over the years. In addition, Hanacek led the Meat Industry Hall of Fame for several years and was vice president of communications for We R Food Safety, a food safety software and consulting company.

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