J.M. Smucker To Sell Several Pet Food Brands To Post Holdings

(RTTNews) - J.M. Smucker Co. (SJM) Wednesday agreed to sell several pet food brands to Post Holdings, Inc., a consumer-packaged goods holding company headquartered in St. Louis, Missouri.

The transaction is valued at about $1.2 billion, consisting of $700 million in cash and around 5.39 million shares of common stock of Post Holdings, Inc.

The transaction includes the Rachael Ray Nutrish, 9Lives, Kibbles 'n Bits, Nature's Recipe, and Gravy Train brands as well as the company's private label pet food business.

The transaction includes relevant trademarks and licenses, and the company's manufacturing and distribution facilities in Bloomsburg, Pennsylvania, as well as its manufacturing facilities in Meadville, Pennsylvania and Lawrence, Kansas.

In addition, a group of employees will transition to Post Holdings, Inc. to support the business. The company expects these brands to generate net sales of aroudn $1.5 billion for the fiscal year ended April 30, 2023, which are primarily reported in the U.S. Retail Pet Foods segment.