Simmons Pet Food sold a 58-acre property and 386,416-square-foot industrial building in Siloam Springs, Arkansas, USA to an affiliate of Store Capital Corp. of Scottsdale, Arizona, USA for US$16.3 million, reported Talk Business and Politics. The pet food company’s facility will become a manufacturing plant for a custom plastic injection molding company. Simmons Pet Foods acquired the property in September 2022 for US$6.2 million from a defunct furniture company.
Companies in the pet food industry may choose to sell a building for various strategic reasons. One primary motivation could be to optimize their real estate assets in alignment with evolving business needs and market dynamics. For instance, if a company experiences changes in production capacity requirements or shifts in geographical market demand, selling a building could free up capital to invest in more suitable facilities or to fund other strategic initiatives.
Additionally, companies may sell buildings to streamline operations and reduce costs. Consolidating manufacturing or distribution facilities into a single, more efficient location can enhance productivity and lower overhead expenses associated with maintaining multiple properties. This can lead to improved profitability and competitive advantage in the market.
Selling a building may be part of a broader restructuring or portfolio optimization strategy aimed at focusing resources on core business activities or divesting non-core assets. By divesting underutilized or outdated properties, companies can improve their overall financial health and allocate resources more effectively towards areas with higher growth potential.
Overall, the decision to sell a building in the pet food industry is often driven by strategic considerations aimed at enhancing operational efficiency, optimizing asset utilization, and maximizing shareholder value.
About Simmons Pet Food
Simmons Pet Food is a North American private-label and contract manufacturer of wet pet food, according to Petfood Industry’s top companies database. The company sources ingredients and uses manufacturing processes to produce premium and value-focused pet food. Simmons supplies top brands and retailers with products in a variety of formats, including cans, pouches and cups. These operations are in Arkansas, Kansas and Iowa in the United States and in Ontario, Canada. Simmons Pet Food is owned by Simmons Foods Inc. & Affiliates.
