J.M. Smucker Co. to sell natural beverage and grains businesses for $110m
The J.M. Smucker Co. (Smucker’s) has agreed to divest its natural and organic beverage and grains businesses to Nexus Capital Management for a sum of around $110 million in an all-cash deal.
The sale by the American food and beverage company includes R.W. Knudsen and TruRoots assets and trademarks as well as a licensing agreement for Santa Cruz Organic beverages. It also includes J.M. Smucker Co.’s manufacturing and distribution facilities in Chico, California and Havre de Grace, Maryland.
However, the deal excludes Santa Cruz Organic nut butters, syrups, fruit spreads, or applesauce.
J.M. Smucker Co. has also announced plans to further streamline operations for its consumer foods business. As part of this, the food and beverage firm intends to close and put up its production facility in Ripon, Wisconsin for sale in 2022 and consolidate production at its facility in Orrville, Ohio.
Reported mainly in the J.M. Smucker Co. US retail consumer foods segment, the natural beverage and grains businesses had registered net sales of around $140 million in the fiscal year ended 30 April 2021.
Tina Floyd — Sr. Vice President and General Manager, Consumer Foods, The J.M. Smucker Co., said: “This transaction supports our strategy to direct investments and resources toward core brands positioned for growth.
“By focusing resources on our core brands, including Uncrustables sandwiches, Jif and Smuckers, we are positioning ourselves to build on our market leadership while continuing to support the growth of the overall category.”
In November, J.M. Smucker Co. revealed plans to construct its third manufacturing facility and distribution center for exclusively producing Smucker’s Uncrustables sandwiches.