Benzinga | Dec 2, 2021 05:36AM EST

J M Smucker Divests Private Label Dry Pet Food Business For ~$33M

* J M Smucker Co (NYSE:SJM) has sold its private-label dry pet food business, including its manufacturing facility in Kansas, to Diamond Pet Foods Inc, in a cash transaction valued at about $33 million.

* The transaction does not include any branded products or the company's private label wet pet food business.

* The divested business generated approximately $95 million in net sales for the fiscal year ended April 30, 2021.

* J M Smucker noted the sale is immaterial to its adjusted EPS on a full-year basis.

* Outlook: J M Smucker updated its FY22 guidance to reflect the removal of divested net sales for the remainder of the fiscal year.

* Smucker expects FY22 sales growth of (1)% to flat year-on-year (prior view (0.5)% - 0.5%).

* The company maintained its adjusted EPS guidance of $8.35 - $8.75, versus the consensus of $8.62.

* Price Action: SJM shares closed higher by 0.06% at $126.55 on Wednesday.