US-based food and beverage producer JM Smucker has announced an agreement to acquire Ainsworth Pet Nutrition for approximately $1.7 billion.
Ainsworth Pet Nutrition is a privately-held company which produces and distributes premium-positioned pet food and pet snacks, including the Rachael Ray Nutrish brand. In addition to the company headquarters in Pennsylvania, the transaction includes two manufacturing facilities and a leased distribution facility.
This acquisition reinforces JM Smucker’s position in pet food market since the addition of Nutrish brand will increase the scale and boost the growth profile of the company’s pet food business, JM Smucker said.
In a statement, chief executive officer Mark Smucker added: “Ainsworth Pet Nutrition is an excellent strategic fit for our Company, as the Rachael Ray Nutrish brand adds another high-growth, on-trend brand to our pet food portfolio”.
In parallel to the Ainsworth Pet Nutrition deal, JM Smucker said it was reviewing strategic options, including a potential divestiture, for its US baking aids business that primarily includes the retail brands Pillsbury, Martha White, Hungry Jack, White Lily and Jim Dandy.
The fast-growing premium pet food segment is increasingly attracting interest from major food firms. Early this year, General Mills also expanded into the pet food space with the acquisition of the Blue Buffalo brand.
Source: JM Smucker (via PR Newswire)