American food and beverages manufacturer The J.M. Smucker has entered into an agreement to sell its premium pet food business Natural Balance to Nexus Capital Management for $50 million.
The transaction is part of the company’s plan to focus on its core pet care portfolio, which includes brands such as Rachael Ray Nutrish, Milk-Bone, and Meow Mix, which have significant long-term growth potential, according to sources.
Mark Smucker, president, and CEO of The J.M. Smucker commented, “The divestiture reflects our strategy to direct investments and resources toward areas of the business that will generate the greatest growth and profitability.”
The transaction is expected to close in the third quarter of the Company’s 2021 fiscal year, subject to customary closing conditions.