J M Smucker to purchase Ainsworth Pet Nutrition for $1.9bn
Leading US processed foods manufacturer J M Smucker has revealed that it is set to purchase pet food company Ainsworth Pet Nutrition in a deal worth $1.9bn.
The transaction is set to cost $1.9bn, not including an expected $200mn in tax benefits.
Ainsworth Pet nutrition is better known as the owner of the Rachael Ray Nutrish brand – a leading pet food banner within the US market.
“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,” said Mark Smucker, Chief Executive Officer. “Their team has done a tremendous job growing this business, building Nutrish into one of the most recognizable premium pet food brands in the United States.”
“After five generations, our family, in partnership with L Catterton, made the decision to sell Ainsworth Pet Nutrition to The J M Smucker Company,” said Sean Lang, Executive Chairman of Ainsworth. “We took great care to find the right home for our brands and our people, to whom we are so grateful.”
The Smucker-Ainsworth deal follows a growing trend of processed food manufacturers expanding into the fast-growing pet foods market, current valued at approximately $30bn in the US alone.
A previous example of this was the acquisition of Blue Buffalo pet Products by General Mills in late February for a fee of $8bn.