J.M. Smucker Co. Expands Its Growing Pet Foods Business

​Last week, the deals market saw major developments within pet foods, technologies, and healthcare. The highlight of the week was J.M. Smucker's add-on acquisition of another pet foods provider.  

• Last Wednesday, J.M. Smucker Co. (NYSE: SJM) purchased Meadville, PA-based Ainsworth Pet Nutrition for $1.9 billion. Roughly two-thirds of Ainsworth's sales come from its Rachel Ray Nutrish brand. According to Bloomberg analysis, the established consumer foods company has been testing various avenues, such as premium pet foods, to reinvigorate its financial performance considering the recent downturn for the consumer products industry. The Orrville, Ohio-based provider of brands such as Smucker's Jam, Folgers coffee, and Jif peanut butter entered the pet foods market in 2015 after acquiring Big Heart Pet Brands for $5.8 billion. The company controls almost a dozen pet food brands, a retail market they believe accounts for more than $30 billion. Last February, fellow consumer foods giant General Mills (NYSE: GIS) purchased Blue Buffalo for $8 billion.

• Last Tuesday, Signode Industrial Group was officially acquired by Philadelphia-based Crown Holdings, Inc. (NYSE: CCK), for $3.9 billion. The Glenview, IL-based company provides global transit packaging systems and solutions and was previously owned by The Carlye Group.

• Last Monday, General Electric (NYSE: GE) reached a $1.05 billion-dollar divestiture agreement with private equity firm Veritas Capital for its IT business unit.  According to Thomson Reuters, the firm is looking to divest more than $20 billion of assets.

• Last Tuesday, Charles River Laboratory International (NYSE: CRL) acquired MPI Research for $800 million. MPI Research is a provider of preclinical research and development services to introduce safer and more effective drugs. The company's preclinical research and development services are carried on general toxicology, bioanalytical and analytical sciences, safety pharmacology, neurobehavioral sciences and molecular imaging, enabling biotechnology and medical companies to conduct tests to determine the safety and dosage levels for humans and animals.
  

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• Last Monday, Clorox (NYSE: CLX) purchased Nutranext (Nature's Products) for $700 million. Concerning the acquisition, Clorox's CEO and Chairman Benno Dorer stated the firm is looking to leverage its brand-building capabilities and existing retail and e-commerce partnerships to steadily grow Nutranext.