Smucker divesting TruRoots and R.W. Knudsen enterprises
The J.M. Smucker Co. is selling its R.W. Knudsen and TruRoots businesses to the private equity firm Nexus Capital Management LP, which is also entering into a licence arrangement for Santa Cruz Organic drinks. The estimated value of the deal is $110 million.
Acquisitions of manufacturing facilities in Chico, California, and Havre de Grace, Maryland, are also included in the agreement. The companies that make fruit spreads, nut butters, syrups, and applesauce under the Santa Cruz Organic brand are not included.
According to Orrville, Ohio-based J.M. Smucker, the combined assets had sales of about $140 million.
A company called R.W. Knudsen makes juices from fruits and vegetables. TruRoots processes goods made from grains, beans, and seeds.
“This deal is in line with our plan to focus capital and resources on our core brands that are positioned for expansion,” stated Tina Floyd, J.M. Smucker’s senior vice president and general manager of consumer foods. “We are putting ourselves in a position to grow the category as a whole and maintain our market leadership by concentrating resources on our core brands, which include Uncrustables sandwiches, Jif, and Smuckers.”
Additionally, Smucker announced that it intends to sell and close a Ripon, Wisconsin, manufacturing facility that produces toppings, sauces, and fruit spreads. Smucker’s Orrville factory will take over the plant’s output.
Between the two corporations, this is their second deal. In 2020, Nexus Capital Management paid $50 million to Smucker to purchase the Natural Balance pet food company.
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Nexus Capital Management’s portfolio comprises a wide variety of companies. The corporation has also made investments in Savvas Learning Co., FTD, Sky Organics, Acosta Sales and Marketing, and other companies.
The agreement is anticipated to close in late 2021 or early 2022, during the third quarter of Smucker’s fiscal year.