J.M. Smucker Co. Divests Private Label Dry Pet Food Business as Part of Continued Portfolio Optimization for ~$33M in Cash

The J.M. Smucker Co. (NYSE:SJM) announced today it has sold its private label dry pet food business, including its manufacturing facility in Frontenac, Kansas, to Diamond Pet Foods, Inc., in a cash transaction valued at approximately $33 million. (PRNewsfoto/The J.M. Smucker Co.) "This divestiture enables us to focus investments and resources on areas of our pet food and pet snacks business positioned for growth and profitability, including driving category growth in dog snacks, building upon our momentum in cat food—particularly with Meow Mix®, and stabilizing Nutrish® dog food by growing consumer demand," said Rob Ferguson, Sr. Vice President and General Manager, Pet Food and Pet Snacks, The J.M. Smucker Co. The transaction does not include any branded products or the Company's private label wet pet food business. The divested business generated net sales of approximately $95 million for the fiscal year ended April 30, 2021. The divestiture is immaterial to the Company's adjusted earnings per share on a full-year basis. Smucker updated its full-year fiscal 2022 guidance to reflect the removal of divested net sales for the remainder of the fiscal year. Full-year net sales are now expected to range from down 1 percent to flat compared to the prior year, which incorporates the impact of the divested Crisco®, Natural Balance®, and private label dry pet food businesses. On a comparable basis, net sales are expected to increase approximately 4.5 percent at the mid-point of the net sales guidance range. The Company maintains its adjusted earnings per share guidance range of $8.35 to $8.75 and free cash flow guidance of $700 million.