LOS ANGELES — Non-public fairness agency Nexus Capital Administration LP on Jan. 31 closed its acquisition of the R.W. Knudsen and TruRoots companies from Orrville, Ohio-based J.M. Smucker Co. The transaction, which is valued at $110 million, additionally features a licensing settlement for Santa Cruz Natural drinks in addition to the corporate’s manufacturing and distribution amenities in Chico, Calif., and Havre de Grace, Md.
The transaction didn’t embody Santa Cruz Natural nut butters, fruit spreads, syrups or applesauce.
“With the shut of this transaction, we at the moment are capable of improve our focus and sources on supporting our core manufacturers to ship continued development,” stated Tina Floyd, senior vice chairman and normal supervisor, Shopper Meals. “We’re assured within the continued momentum of our client meals technique and excited in regards to the alternatives to construct on our management place.”
The mixed belongings had gross sales of roughly $140 million within the fiscal yr ended April 30, 2021, in keeping with J.M. Smucker.
R.W. Knudsen is a producer of fruit and vegetable juices. TruRoots is a processor of grain-, bean- and seed-based merchandise.
J.M. Smucker stated it expects the divestiture to be dilutive to its adjusted earnings per share by roughly 15¢ on a full-year foundation, reflecting the foregone revenue associated to the pure and natural drinks and grains companies, earlier than factoring in any potential profit from using internet proceeds from the sale.
Damian Giangiacomo, companion at Nexus, stated the agency believes in each manufacturers’ legacy in addition to their capacity to develop as impartial corporations. He stated the businesses will likely be guided by a administration crew led by Bobby Chacko as chairman and chief govt officer.
Mr. Chacko most not too long ago was CEO of Ocean Spray Cranberries. He additionally has held management roles at Coca-Cola Co. and Mars, Inc.
“Bobby is a dynamic CPG govt with a profitable monitor file of producing robust innovation and development,” stated Daniel Flesh, companion at Nexus. “His management and experience will likely be vital as we develop this new plant-based client platform.”
That is the second transaction between the 2 corporations. Nexus Capital Administration acquired the Pure Stability pet meals enterprise from Smucker for $50 million in 2020.
Nexus Capital Administration has a various vary of corporations in its portfolio. Different companies the corporate has invested in consists of Acosta Gross sales and Advertising, FTD, Savvas Studying Co., Sky Organics and others. Source