Smucker to Buy Rachael Ray Dog Food Brand in $1.9 Billion Deal

  • Food giant expanding in growing premium pet-products market
  • Company also confirms it will explore sale of U.S. baking unit
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J.M. Smucker Co. agreed to buy Ainsworth Pet Nutrition in a deal valued at $1.9 billion, betting that pet food can help reinvigorate sales in a sluggish consumer-product industry.

The transaction, which gives Smucker a brand of premium dog and cat food backed by celebrity chef Rachael Ray, will amount to about $1.7 billion when excluding a $200 million tax benefit. The company also confirmed that it’s exploring the sale of its U.S. baking unit, which generates roughly $370 million in annual sales.