The J. M. Smucker Company announced it has completed the acquisition of Ainsworth Pet Nutrition, LLC in a transaction valued at approximately $1.7 billion, after an estimated tax benefit of $200 million. The company previously announced the signing of a definitive agreement to acquire Ainsworth in April.
Ainsworth is a leading producer, distributor, and marketer of premium pet food and pet snacks, predominately within the United States. Approximately two-thirds of Ainsworth's sales are generated by the Rachael Ray Nutrish brand, which is driving significant growth in the premium pet food category.
"We are excited to have completed this transaction, which increases the scale and further accelerates the growth profile of our pet food and pet snacks business," said Mark Smucker, CEO. "The Ainsworth team has done a tremendous job growing this business, building Rachael Ray Nutrish into one of the most recognizable premium pet food brands in the United States. We are pleased to welcome the Ainsworth employees into the Smucker family and look forward to working with this talented team as we continue to grow our pet food business together."
As previously announced, in connection with the closing of the transaction, Jeff Watters, who served as the president and CEO of Ainsworth, has joined Smucker, assuming the role of senior vice president and general manager, Ainsworth. In this role, Watters will support the integration of Ainsworth into Smucker's pet food business as a key member of the pet leadership team.
Smuckers funded the acquisition through the combination of a $1.5 billion term loan and borrowings under the Company's commercial paper program.