Simmons Pet Food has 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, Talk Business and Politics reported. 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 a variety of strategic reasons. A key motivation can be to optimize their real estate assets in line with evolving business needs and market dynamics. For example, if a company experiences changes in production capacity requirements or changes in geographic market demand, the sale of a building can free up capital to invest in more suitable facilities or to finance other more strategic initiatives.
In addition, companies can sell buildings to streamline operations and reduce costs. Consolidating manufacturing or distribution facilities into a single, more efficient location can improve productivity and lower overhead costs associated with maintaining multiple assets. This can lead to improved profitability and competitive advantage in the market.
The sale of the 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 By getting rid of unused or outdated assets, companies can improve their overall financial health and allocate resources more effectively to areas of higher growth potential.
In general, the decision to sell a building in the pet food industry is often driven by strategic considerations aimed at improving 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 the Petfood Industry’s leading company database. The company sources ingredients and uses manufacturing processes to produce premium and value-focused pet food. Simmons supplies leading 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.
