J. M. Smucker to buy Ainsworth Pet Nutrition in $1.7 billion deal
Staff Writer |
The J. M. Smucker Company announced the signing of a definitive agreement to acquire Ainsworth Pet Nutrition in a transaction valued at approximately $1.7 billion, after an estimated tax benefit of $200 million.
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The Company also announced today it will explore strategic options for its U.S. baking business, including a potential sale.
Ainsworth is a leading producer, distributor, and marketer of premium pet food and pet snacks, predominately within the United States. Approximately two-thirds of Ainsworth's sales are generated by its Rachael Ray Nutrish brand, which is driving significant growth in the premium pet food category.
Ainsworth also sells pet food and pet snacks under several additional branded and private label trademarks.
Pet food and pet snacks has become the largest center-of-the-store category in the U.S. Food and Beverage market, generating over $30 billion in annual retail sales across all channels, and remains one of the fastest-growing categories.
This acquisition and the addition of the high-growth Nutrish brand will increase the scale and further accelerate the growth profile of the Company's pet food business.
Nutrish holds a leading position and is one of the fastest-growing brands in the premium dry dog food segment within the grocery and mass channels, a key growth driver for the overall category.
The addition of Nutrish to the Company's portfolio will significantly expand the Company's presence in this area, complementing the Company's Nature's Recipe brand.
The transaction further strengthens the Company's position in dog snacks with the presence of Nutrish in fast-growth segments, including natural meats and long-lasting chews.
While Nutrish has a relatively smaller presence in premium cat food, the brand is well-positioned for significant growth in this segment. This will help accelerate opportunities in the Company's current pet food portfolio. ■