J.M. Smucker Sells Organic Grain and Beverage Businesses to Nexus Capital for $110M
J.M. Smucker has agreed to sell its organic/natural grain and beverages businesses to Nexus Capital Management through a cash deal valued at $110 million. The transaction will also include the company’s manufacturing and distribution facilities in Chico, California, and Harve de Grace, Maryland.
Collectively, the natural grains and beverage businesses generated net sales of about $140 million for fiscal year ending April 30, 2021, the bulk of which were realized in the U.S. Retail Consumer Foods segment. Related to this move, Smucker also has decided to close and pursue the sale of its production facility in Ripon, Wisconsin, in 2022, and consolidate production at its site in Orrville, Ohio.
The sale will include the R.W. Knudson and TruRoots assets and trademarks, and a licensing agreement for Santa Cruz Organic beverages, and is expected to close in the third quarter of Smucker’s 2022 fiscal year.