J.M. Smucker buys Folgers for $2.95 billion
Jams and jellies maker J.M. Smucker made a $2.95 billion bid for more of the breakfast table June 4, announcing all-stock deal for Folgers coffee.
Smucker also will assume about $350 million of Folgers' debt in a buyout from the current owner, Procter & Gamble Co.
Smucker will issue a special $5 dividend to Smucker shareholders at a to-be-determined record date, before the acquisition. P&G shareholders will receive about 53.5 percent of Smucker in a tax-free stock-for-stock acquisition after the dividend.
J.M. Smucker Co. expects the acquisition will boost profits by about 9 percent, excluding costs, if it owns the brand for the entire 2009 fiscal year. The company expects sales to increase to about $4.7 billion.
The deal with Cincinnati-based P&G is expected to close in the fourth quarter.