* Disclaimer - If ad is a click thru and you are having problems please click on link to download latest version of flash player.Flash Player

ON THE WEBSITE:

• S.C. STATE HOMECOMING: Directions and traffic plans
• INDUSTRY 2008: News, database of industries and more
• PET CORNER: Your home for news and PET IDOL
• FEDERAL EARMARKS: See where the money is spent

A Few Clouds and 74° F

Advanced Search
You are not logged in. | Login | Register

Log in to TheTandD.com

*Member ID:
*Password:
Remember login?
(requires cookies)
  Forgot Your Password?
 

Smucker's to acquire Folgers coffee business from P&G in $3.3B deal

Thursday, June 05, 2008

Leave a Comment | Default | Large

The J.M. Smucker Company (NYSE: SJM) and The Procter & Gamble Company (NYSE: PG) announced on Wednesday the signing of a definitive agreement to merge the Folgers coffee business into Smucker in an all-stock transaction valued at approximately $3.3 billion, including the assumption of an estimated $350 million of Folgers debt.

As part of the transaction, Smucker will issue a one-time special dividend of $5 per share to Smucker shareholders as of the record date, prior to the merger, a clear indication of the strength of the combined businesses.

Following this one-time special dividend, P&G shareholders will receive approximately 53.5 percent of Smucker in a tax-free stock-for-stock merger.

Folgers is the leading producer of retail packaged coffee products in the United States with a 150-year history. Folgers' broad portfolio of products are sold primarily under its flagship Folgers brand.

This brand joins a widely recognized portfolio of brands that include Smucker's, Jif, Crisco, Pillsbury, Eagle Brand, Hungry Jack, Robin Hood and Bick's.

The proposed transaction creates a company with annual sales approaching $5 billion.

With the addition of Folgers, the total size of the categories in which Smucker participates increases to approximately $15 billion as compared to $1 billion in 2002.

The addition of Folgers, a billion dollar brand, is consistent with Smucker's strategy to own and market number one food brands in North America.

Source: www.smuckers.com

 
Leave a Comment
The following comments are reader submitted. They do not represent the views of The T&D or Lee Enterprises.



» Post a comment Thanks for your comment! Once approved, your comment will appear on the site.

You must be logged in to comment.

Click Here To Sign in

Click here to get an account
it's free and quick
Please note: The Times and Democrat provides our story commenting feature in order to solicit feedback, debate and discussion on topics of local interest. Please keep in mind that civility is a necessary component of productive conversation. All blatantly inflammatory or otherwise inappropriate comments (i.e. vulgarity, marketing, etc.) are subject to rejection and/or removal. Comments will appear if and when they are approved. Thanks for reading, and thanks for participating.

More Business