Nexus finalizes acquisition of Smucker businesses

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 embrace Santa Cruz Natural nut butters, fruit spreads, syrups or applesauce.

“With the shut of this transaction, we at the moment are in a position to enhance our focus and assets on supporting our core manufacturers to ship continued progress,” stated Tina Floyd, senior vp and basic supervisor, Client Meals. “We’re assured within the continued momentum of our shopper meals technique and excited concerning the alternatives to construct on our management place.”

 The mixed property had gross sales of roughly $140 million within the fiscal 12 months 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 web proceeds from the sale.

Damian Giangiacomo, companion at Nexus, stated the agency believes in each manufacturers’ legacy in addition to their capability to develop as impartial firms. He stated the businesses might be guided by a administration group led by Bobby Chacko as chairman and chief government officer.

Mr. Chacko most lately was CEO of Ocean Spray Cranberries. He additionally has held management roles at Coca-Cola Co. and Mars, Inc.

“Bobby is a dynamic CPG government with a profitable observe document of producing sturdy innovation and progress,” stated Daniel Flesh, companion at Nexus. “His management and experience might be essential as we develop this new plant-based shopper platform.”

That is the second transaction between the 2 firms. Nexus Capital Administration acquired the Pure Steadiness pet meals enterprise from Smucker for $50 million in 2020.

Nexus Capital Administration has a various vary of firms in its portfolio. Different companies the corporate has invested in contains Acosta Gross sales and Advertising and marketing, FTD, Savvas Studying Co., Sky Organics and others.