The J.M. Smucker Co. has announced that it plans to sell several of its pet food brands to Post Holdings Inc., a consumer packaged goods holding company.
The brands that are being sold include Rachael Ray Nutrish, 9Lives, Kibbles ‘n Bits, Nature’s Recipe and Gravy Train, as well as Smucker’s private label pet food business. The total value of the deal is estimated at $1.2 billion.
The sale is part of Smucker’s strategy to prioritize investments in areas that offer strong growth and profit potential.
Mark Smucker, CEO of J.M. Smucker, stated in a press release that the divestiture will allow the company to focus on its dog snacks and cat food offerings, anchored by the Milk-Bone and Meow Mix brands.
The deal, which is expected to close this spring, includes relevant trademarks, licenses and manufacturing and distribution facilities.
Smucker’s pet food segment has seen significant growth in the past quarter, with double-digit increases in sales and volume, both domestically and internationally. The Milk-Bone brand was the top dog treat brand, with sales up 20%.
Post Holdings has a growing portfolio of well-known and trusted brands, including Pebbles breakfast cereal, Peter Pan peanut butter, Egg Beaters and Ronzoni pasta.
The acquisition will give Post a significant presence in the pet food market, with a focus on the mainstream and entry premium subcategories.
With the addition of the pet food platform, Post is poised to become a major player in the consumer packaged goods industry, with a diverse portfolio of brands that cater to a range of consumer needs and preferences.
Post’s President and CEO, Rob Vitale, expressed his excitement about the acquisition, stating that it would provide the company with a new opportunity to create value through its buy-and-build approach to categories.
Vitale also welcomed the over 1,000 employees who will join Post as a result of the acquisition.