J.M. Smucker has closed the divesture of its natural and organic beverage and grains businesses, selling them to Nexus Capital Management in a cash transaction valued at $110 million, subject to a working capital adjustment. The company previously announced the signing of a definitive agreement on December 15, 2021.
The transaction encompasses R.W. Knudsen and TruRoots assets and trademarks, and a licensing agreement for Santa Cruz Organic beverages. It also includes the company’s manufacturing and distribution facilities in Chico, Calif., and Havre de Grace, Md. It does not include Santa Cruz Organic nut butters, fruit spreads, syrups, or applesauce.
The divestiture supports the company’s strategy to focus resources on core brands positioned for growth. Through this approach, the company is positioned to build on its market leadership, while continuing to support the growth of the overall category.
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“With the close of this transaction, we are now able to increase our focus and resources on supporting our core brands to deliver continued growth,” says Tina Floyd, senior vice president and general manager, consumer foods. “We are confident in the continued momentum of our consumer foods strategy and excited about the opportunities to build on our leadership position.”
“We are extremely excited by the opportunity to acquire the Smucker’s natural beverage and grains businesses,” says Damian Giangiacomo, Partner at Nexus. “We believe in each of the brands’ strong legacy and the ability to grow the business as an independent company in partnership with a strong management team, led Bobby Chacko as chairman and CEO.” Chacko previously held leadership roles at Ocean Spray, Mars, and Coca-Cola.