Market News

Smucker Acquires Folgers from P&G

J.M. Smucker Co. announced that it would acquire the Folgers coffee business from Procter & Gamble Co. for stock valued at US$2.95-billion plus the assumption of $350 million in debt. The deal would give P&G shareholders a 53.5% stake in the company. Smucker said the deal would add to fiscal 2009 earnings per share by about 9% if the company owns Folgers the entire fiscal year, excluding merger and integration costs, but including the effect of the special dividend. The addition of Folgers will add to the products Smucker brings to retailers ¿ allowing for more marketing options, while Folgers also is well known to consumers, Richard Smucker, president and co-chief executive of Smucker, said. Source: Canadian Grocer E-Newsletter, June 6, 2008