LOS ANGELES, CALIF. – Private equity firm Nexus Capital Management LP is acquiring the R.W. Knudsen and TruRoots businesses from the J.M. Smucker Co. as well as entering into a licensing agreement for Santa Cruz Organic beverages. The transaction is valued at approximately $110 million.
The agreement also includes the acquisition of manufacturing plants in Chico, Calif., and Havre de Grace, Md. It does not include the Santa Cruz Organic nut butters, fruit spreads, syrups or applesauce businesses.
The combined assets had sales of approximately $140 million, according to J.M. Smucker, which is based in Orrville, Ohio.
R.W. Knudsen is a manufacturer of fruit and vegetable juices. TruRoots is a processor of grain-, bean- and seed-based products.
“This transaction supports our strategy to direct investments and resources toward core brands positioned for growth,” said Tina Floyd, senior vice president and general manager of consumer foods for J.M. Smucker. “By focusing resources on our core brands, including Uncrustables sandwiches, Jif and Smuckers, we are positioning ourselves to build on our market leadership while continuing to support the growth of the overall category.”
Smucker also said it plans to close and sell a manufacturing plant in Ripon, Wis., that processes fruit spreads, condiments and toppings. Production from that plant will be shifted to Smucker’s Orrville plant.
This is the second transaction between the two companies. Nexus Capital Management acquired the Natural Balance pet food business from Smucker for $50 million in 2020.
Nexus Capital Management has a diverse range of companies in its portfolio. Other businesses the company has invested in includes Acosta Sales and Marketing, FTD, Savvas Learning Co., Sky Organics and others.
The deal is expected to close during the third quarter of Smucker’s fiscal year, which occurs during late 2021 through early 2022.