ORRVILLE, OHIO — The J.M. Smucker Co. announced plans to divest its Natural Balance premium pet food business. Nexus Capital Management LP has agreed to buy the business for $50 million in cash, subject to a working capital adjustment and before a one-time cash tax benefit to be realized on the sale. The transaction includes products sold under the Natural Balance brand, certain trademarks and licensing agreements and select employees who support the business.

Natural Balance generated net sales of approximately $220 million in the fiscal year ended April 30.

“The divestiture reflects our strategy to direct investments and resources toward areas of the business that will generate the greatest growth and profitability,” said Mark Smucker, president and chief executive officer of The J.M. Smucker Co. “Today’s announcement helps the company further focus on the core brands within our pet food and pet snacks portfolio including Rachael Ray Nutrish, Milk-Bone and Meow Mix, among others, which together create a unique portfolio with significant long-term growth potential that meets consumer needs across value, mainstream and premium offerings.”

The transaction is expected to close in the third quarter of Smucker’s 2021 fiscal year and remains subject to customary closing conditions. Management expects the divestiture to dilute adjusted earnings per share by 5¢ to 10¢ on a full-year basis, which reflects lost profit related to the business prior to factoring in potential benefits from the use of proceeds from the sale.