Nexus finalizes acquisition of Smucker businesses

LOS ANGELES — Personal equity firm Nexus Capital Management LP on Jan. 31 closed its acquisition of the R.W. Knudsen and TruRoots corporations from Orrville, Ohio-dependent J.M. Smucker Co. The transaction, which is valued at $110 million, also includes a licensing agreement for Santa Cruz Natural drinks as well as the company’s production and distribution facilities in Chico, Calif., and Havre de Grace, Md.

The transaction did not include things like Santa Cruz Organic nut butters, fruit spreads, syrups or applesauce.

“With the near of this transaction, we are now in a position to maximize our aim and methods on supporting our main makes to supply ongoing progress,” said Tina Floyd, senior vice president and general manager, Buyer Food items. “We are self-assured in the ongoing momentum of our client foods method and fired up about the options to build on our leadership position.”

 The blended property experienced revenue of close to $140 million in the fiscal 12 months finished April 30, 2021, in accordance to J.M. Smucker.

R.W. Knudsen is a manufacturer of fruit and vegetable juices. TruRoots is a processor of grain-, bean- and seed-based solutions.

J.M. Smucker explained it expects the divestiture to be dilutive to its adjusted earnings for every share by approximately 15¢ on a full-calendar year foundation, reflecting the foregone revenue connected to the purely natural and organic and natural beverages and grains organizations, right before factoring in any potential gain from the use of web proceeds from the sale.

Damian Giangiacomo, lover at Nexus, stated the company thinks in each brands’ legacy as properly as their skill to develop as independent companies. He stated the companies will be guided by a administration crew led by Bobby Chacko as chairman and main govt officer.

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

“Bobby is a dynamic CPG government with a thriving monitor document of building strong innovation and expansion,” mentioned Daniel Flesh, partner at Nexus. “His leadership and abilities will be important as we produce this new plant-dependent shopper platform.”

This is the second transaction involving the two firms. Nexus Money Administration obtained the Purely natural Stability pet food stuff business from Smucker for $50 million in 2020.

Nexus Funds Management has a varied selection of firms in its portfolio. Other firms the organization has invested in contains Acosta Revenue and Internet marketing, FTD, Savvas Mastering Co., Sky Organics and some others.

Christopher Lewis

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